Xfc UC-NRLF BOOK-KEEPING 2 s. CHAMBERS'S EDUCATIONAL COURSE. % Already pnhluhcd^ all strongly hound in Bark-coloured Cloth -.-^ DIRECTORIES. Infant Treatment 1* 3d Infant Education Is Od ENGLISH. First Book of Reading lid Second Book of Keaiiing 3d Simple Lessons in Reading lOd Moral Class-Hook \s 6d Introduction to Composition 6d Introduction to Grammar 1* 3d Grammar, Two Parts, each 1* 6d Exercises inEtjTiiology 2* Od P21ocution 2* Cd History of the English Lan- guage and Literatui-e 2* Qd ARITHMETIC AND MATHEMATICS. Introduction to Arithmetic Is Od Arithmetic (Advanced Trea- tise) ....:^s Od Key to Arithmetic ..2* Od Book-Keeping by Single En try... 1* 3d Book-Keeping by Single and Double Entry 2* Commercial Tables 3i- Algebra. 3* Key to Algebra 2* Plane Geometry 2j Key to Plane Geometry 2* Solid and Spherical Geome- tiy.... >. 2* Qd Practical Matliemktics, Two Parts, each 3* 6d K&y to Practical Mathema- tics 3.t 6d Mathematical Tables Zs f)d SCIENCE. 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[Nearly licady.) *** Other works in preparation. — April 1851. :xxxxxxxxxxxxxxxxxxxxxxxxxxxxx> (XXXXXXXXXXXXXXXXXXXXXXXXX)()?)^XXXXXX> a/vvyxxxxXXXX-^^^^'^"^''''^XXXXXXXaXXXX--''^'''^^^^ vyyyy^ ^yyvywyvv i NOTICE. in this Edition, the Day-Book and Invoice-Book in Single Entry are given with double, instead of single money-columns, as formerly, and the account for " Goods" bought and sold, referred to at page 72 of the former edition, is now introduced into the Ledger. XXXXXXXXXXXXXXWVvvWywyv Digitized by tine Internet Arcliive in 2007 witli funding from IVIicrosoft Corporation littp://www.arcliive.org/details/bookkeepingbysinOOinglricli CHAMBERS'S EDUCATIONAL COURSE— EDITED BY W. AND R. CHAMBERS, BOOK-KEEPING BY SINGLE AND DOUBLE ENTRY; AN APPENDIX CONTAINING EXPLANATIONS OF MERCANTILE TERMS AND TRANSACTIONS. BY W. I N G L I S. ^^^ OF TEK > fUNIVEIlSITTl E D I N B U R G H r^^^^::::::::^^^^^^ PUBLISHED BY WILLIAM AND ROBERT CHAMBERS. 1850. ttvf; EDINBURGH : PRINTED BY W. AND R. CHAMBERS. NOTICE. In the present Treatise, simplicity is the object chiefly aimed at, and all unnecessary technicalities in the phraseology and com- plexity in the system of keeping the accounts have been studiously avoided. The principles of Book-Keeping are exhibited, not by means of abstract rules, but by examples of the various transac- tions common in actual business. The work embraces Book-Keeping by " Single and Double Entrj^" Another edition, containing Single Entry alone, is issued for the convenience of those who may not require a knowledge of the entire system. An Appendix, containing Explanations of Mercantile Terms and Transactions, is subjoined, which will serve in some measure as a guide to the Counting-room. W.I. Edinburgh^ August 1849. CONTENTS. Definitions, Day-Book, Invoice-Book, Cash-Book, Bill^Book, - Ledger, Single Entry, Page 5 6 - 7 8 - 10 11 - 12 Posting the Day-Book, Invoice-Book, Cash-Book, and Bill-Book, 12-17 Balancing the Ledger, Taking Stock, - - _ Balance Sheet, > - _ Profit and Loss, - - - Private Account, - - . Account for Goods Bought and Sold, Books of John Adams, Day-Book. Invoice-Book. Cash-Book. Bill-Book. 17 - 18 19 . 20 21 22, 72 23-74 Stock-Book. Warehouse-Book. Ledger. Account-Book. Double Entry, -------75 Posting the Day-Book, Invoice-Book, Cash-Book, and Bill-Book, 76-90 Balancing the Ledger, Taking Stock, Profit and Loss, - Balance Sheet, Private Account, Booiis OF Hamilton and Boyd, Day-Book. Invoice-Book. Cash-Book. Bill-Book. - 91 92 - 93 93 - 94 95-150 Warehouse-Book. Stock-Book. Ledger. Account-Book. Appendix — Mercantile Terms and Transactions. BOOK-KEEPING. Book-Keeping is the art of recording and classifying a merchant's or tradesman's daily transactions, and of keeping an account of his property and debts. The property or capital of persons in business, may be comprised under the following heads : — I. Stock in trade, including goods, warehouses, machinery, ships, or whatever species of stock is employed in the business. II. Accounts, or debts owing to the merchant. III. Bills, „ IV. Cash. A merchant's books ought to exhibit clearly the whole amount of his property, with the particulars of which it is composed ; and also the amount of his debts. The following are the most important of the books used in Book- Keeping : — Day -Book, for Goods sold on credit. Invoice-Book, Cash-Book, Bill-Book, Ledger, Stock-Book, to Goods hought on credit. Cash received and paid. Discount received and allowed. Bills receivable and payable, contain an abstract of the other books, contain an inventory of the stock on hand at the time of balancing the books. The following subsidiary books are also in general use : — Account-Book, to contain a list of accounts owing to, and owing by, the merchant. Warehouse-Book, „ contain an account of the quantities of goods received, sent out, and on hand. Memorandum-Book, „ contain temporary memorandums. Letter-Book, „ contain copies of letters. Various other books are required, according to the nature of the business. BOOK-KEEPING. DAY-BOOK. The purpose of the Day-Book is to keep a daily account of all goods sold on credit When the goods are sold, the names and addresses of the per- sons to whom they are sold, v/ith a description of the goods and their prices, are entered in the Day-Book, as shown in the follow- ing examples : any other charges are entered in a similar way. The particulars of the entries are filled into the inner money columns ; the sums- total into the outer columns : — thus, If, on January 1, you sell to George Innes, Liverpool, 20 yards of hlack silk @ 3s. 6d. per yard, 12 yards of velvet @ lis., and 15 yards of linen @ 2s. 6d. ; and if, besides, you wish to make a charge for packing and commission, The transaction will be entered in your Day-Book, as in the first of the following examples : — January 1, 1850. George Innes, Liverpool. To 20 Yards Black Silk „ 12 „ Velvet „ 15 „ Linen Wrapper and packing, Commission JDr. @ " Dr, To " is a contraction for " Debtor To." — 3d— Charles Chadwick, Manchester. To 40 Yards Welsh Flannel @ 1/10 When there is only one sum in the entry, it is filled at once into the outer columns. —4.th.— William Wilson, London. To 4 Reams Royal Printing Paper.. (5) 21/ „ 1 Edgeworth's Moral Tales James Brown, Edinburgh. To 10 lbs. Sugar @ e^d. » 2 „ Tea „ 4/6 James Watt, 60 George Street. To 1 Ream Small Post Paper „ 1 Box Steel Pens £> s. d. 12 15 13 14 In the Day-Book, instead of " Dr. To," which is the mercantile phrase in full, it is enough to write "To ; " and in the InToice-Bock, instead of " Cr. By," it is enough to write " By." L BOOK-KEEPING. INVOICE-BOOK. This book is used for keeping an account of all goods bought on credit. It is so called because the entries made in it are copied from the invoices (see Appendix) usually sent along with the goods. When the goods are bought, and have been received, the names and addresses of the persons from whom they are bought, with a description of the goods and their prices, are entered in the Invoice- Book, as below : any other charges are entered in the same way : — thus, If, on January 1, you receive from James Stewart & Co., Leeds, 180 yards of black cloth @ 13s. 7d., 80 yards of brown cloth @ 14s. 5d., 80 yards of olive cloth @ 14s. lOd., and 100 yards of black cloth @ 15s. 2d. ; and if a charge of 9s. 6d. is made for packing, &c., You make the entry in your Invoice-Book as in the first of the following examples, the entry being copied from the invoice which you have received from James Stewart & Co. Instead of copying the particulars of the invoices, it is often more convenient to copy the amount only, as shown in the entry of J. Miller, Jan. 20. The invoices are preserved for future reference, if necessary. They may be kept either in a book made for the purpose, or tied up in parcels, having the name, date, and amount marked on each. January 1, 1850. James Stewart & Co., Leeds. Cr. By 9 Pieces Black Cloth, 180 yds.* @ 13/7 „ 3 „ Brown do. 80 „ „ 14/5 „ 4 „ Olive do. 80 „ „ 14/10 „ 5 „ Black do. 100 „ „ 1.5/2 Wrapper and packing • that is, 9 pieces measuring 180 yards, at 13s- 7d. a yard. " Cr. By " is a contraction for " Creditor By." — 2d— Robert Gray, Bradford. By 3 Pieces Black Cloth, 150 yds.. @ 13/6 „ 2 „ Brown do. 90 „ „ 14/6 „ 5 „ Olive do. 125 „ „ 15/ ~2Qth.— John Miller, Edinburgh. By Goods, as per Invoice, January 19 In practice, instead of copying the particulars of the in- voices, it is often more convenient to enter the amount only, ■with the date of the invoice. £ 122 5 59 75 101 65 93 315 260 33 11 15 BOOK-KEEPING. CASH-BO OK. In the Cash-Book is kept an account of all cash received and paid, and of discount received and allowed. Two pages are always required for the entries ; the left-hand page for entering the cash you receive, and the discount allowed hy you ; the right-hand page for the cash you pay, and the dis- count allowed to you. Each page is ruled with double money columns ; the inner columns being used for the discount, the outer for the cash. When you receive payment of an account, enter on the received side Cash Received. 1850. Jan. 20 J. Adams — Cash at commencement... This is the sum with which you com- menced business. James Brown, George Street Here James Brown settled his account, amounting to £4, 19s. 6d., by paying you £4, 15s. Od.— 4s. 6d. having been allowed to him as discount. Union Bank This sum was received by you from the Bank. Goods — Cash Sales This is an entry for goods which you have sold for ready money. Bills Receivable, No. 1, discounted, £172, lis. This bill for £172, lis. Od., marked No. 1 in your Bill-Book under *' Bills Receivable," was sent to the Bank to be discounted; £172, 3s. 6d. was received for it in cash, 78. 6d. being charged by the Bank for dis- counting it. BALANCING THE CASH-BOOK.— To ascertain that the sums have been entered correctly, the Cash-Book requires to be balanced at stated times, as explained at page 44. PETTY CASH-BOOK — See Appendix. CASH-BOOK, DOUBLE ENTRY.— Additional money columns are used in Double Entry: see pages 86 and 87. Cash. £ s. d. 1000 15 110 172 1289 6 BOOK-KEEPING. 9 the name of the person from whom you receive the money, and fill the amount of cash and discount into the cash and discount columns. When you pay an account, enter on the paid side the name of the person to whom you pay it, and fill the sum and the discount into the cash and discount columns. Various money transactions are shown in the following example. The nature of every transaction should be distinctly expressed, and the sums paid or received, filled into the money columns opposite each entry. [It is usual to name the left-hand side the Dr. side, and the right-hand the Cr. side, prefixing "To" and "By" to the entries; but these have been omitted for the sake of simplicity.] Cash Paid. 1 Union Bank.. Discount. Cash. 1850 Jan. £ s. d. £ 990 s. d. This sum was paid by you into the Bank. 3 5 Trade Expenses— J. Smith's salary.. Do. Carriages Do. Rent and Taxes... The various payments made for the ex- penses of carrying on the business are en- tered as above. Goods — Cash Purchases 3 33 3 10 7 15 6 This is an entry for goods which you have bought for ready money. 20 Shop-Eurniture, J. Anderson's Acct. This is a payment for the expense of fitting up your shop, &c. Bills Payable, No. 1 This bill, marked No. 1 in your Bill-Book, under " Bills Payable," having become due, is now paid by you. 107 100 10 ,30 John Adams 15 This sum is received by yourself, or drawn out of the business, for your own use or personal expenses. John Miller, Edinburgh 17 32 18 6 Here you paid J. Miller £32, 18s. 6d. in settlement of his account, 17s. having been allowed to you as discount. Cash on hand 3 1289 5 6 10 BOOK-KEEPING. BILL-BOOK. In this book is kept an account of all " Bills Receivable " — that is, bills of which you have to receive payment — and " Bills Pay- able " — that is, bills which you have to pay when they become due. (For an account of bills, see Appendix.) One portion of the book is kept for "Bills Receivable," and an- other for " Bills Payable." The names of the persons from whom you have received the bills, or to whom you have granted them, with the sums, dates, and other particulars, are entered as follows : Bills Beceivable. No. When Reed. 1850. Jan. 2 , 12 From whomReceived, Geo. Innes, Liverpool. J. Lindsay, Aberdeen Date. Term 1850. Jan. 1 , 10 1 mo. 3 „ When Due. 1850. Feb. 4 Ap. 13 Entered in Cash-Book 1850. January 10 March 20 These bills were received by you on the dates marked, from G. Innes and J. Lindsay, in settlement of your accounts against them. When you discount the bills at the Bank, or receive payment of them when due, they are entered in the Cash-Book, and the dates of the entries are filled into the column in the Bill-Book, as above. Various other columns used in business, will be seen at pages 51 and 53. Bills Payahle. No. When Accep. To whom Granted.* Amount. Date. Term When Due. Entered in Cash-Book 1 2 1850. Jan. 4 „ 8 J.Stewart &Co.,Leeds R. Gray, Bradford * or, By whom Drawn. £ 300 250 s. d. 1850. Jan. 4 „ 8 1 mo. 10 da. 1850. Feb. 7 Jan. 21 1850. February 7 January 21 These bills were granted by you to J. Stewart & Co. and R. Gray, in settlement of their accounts against you. When you pay the bills, they are entered in the Cash-Book, and the dates of the entries are filled into the column in the Bill-Book, as above. BOOK-KEEPING. 11 THE LEDGER. In the Ledger is contained an abstract of all the entries made in the other books. The entries dispersed throughout the Day-Book, Invoice-Book, Cash-Book, and Bill-Book, are collected together in the Ledger, and arranged in the order of their dates, under the names of the various persons to whom they belong. A page, or such portion of a page as is likely to be required, is assigned to every person's account; and each page being ruled with Dr. and Cr. columns, the amounts of all the Dr. entries be- longing to each person, are copied one by one into the Dr. sides, and the amounts of all the Or. entries into the Cr, sides, of the respec- tive accounts in the Ledger. The copying of these entries into the Ledger is termed posting. Example. James Brown, 75 George Street. Dr. Cr. 1850. Jan. To Goods.. „ do. .. 1850. Jan. By Cash ,, Discount.. £ s. 1 4 15 » 4 4 19 Thomas Thomson, London. Cr. 1850. Feb. To Bill due Mar. 31. 1850. Feb. Mar. By Goods.. „ do. .. George Innes, Liverpool. Dr. Cr. 1850. Jan. 1 Feb. 6 Mar. 14 15 31 To Goods.... „ Do „ Do ,, Cash ,, Bill due May 2 £ s. d. 1850. 1 172 11 Jan. 1 5 67 3 9 Feb. 25 11 6 15 22 15 7 Mar. 1 3 100 7 20 377 16 9 By Bill due Feb. 4, „ Cash ,, Discount ,, Goods „ Do „ Do The entries of goods on the Dr. side are posted from the Day- Book, and on the Cr. side from the Invoice-Book. The entries of cash and bills are posted from the Cash and Bill-Books. 12 BOOK-KEEPING. SINGLE ENTRY. In Book-Keeping by Single Entry, each entry in the Day-Book, Invoice-Book, Cash-Book, and Bill-Book, is posted or entered once to some account in the Ledger ; hence the term '* Single Entry." In " Double Entry," each entry is posted to two different accounts. Single Entry is used chiefly by retail dealers, as it is more simple, and occupies less time in posting than " Double Entry." POSTING THE DAY-BOOK. The posting of the Day-Book into the Ledger, is conducted in the following manner : — Write the name and address of the person first entered in the Day-Book, along the top of a page in the Ledger ; then write below this, on the Dr, side, the date, the page of the Day-Book from which the entry is taken, and the amount* of goods to which he is Dr., using the words " To Goods ;" next enter the person's name, and the page of the Ledger, into an Index to be kept of all the names that may be posted ; and finally, mark the page of the Ledger, on the margin of the Day-Book, opposite the entry, to show that the entry has been posted. The posting of the first entry being now finished, write, in another page of the Ledger, the name of the next person mentioned in the Day-Book, posting the entry as before; and so on with all the other entries in succession, each to the Dr, of the various accounts. When you come to another entry against a person whose name has been already filled into the Ledger, write the second entry immediately below the first, using the words '* To ditto," or " To do." * In the Ledger of wholesale merchants the amount only of goods is posted ; but in Retail Ledgers it is more convenient to copy the particulars, except when they are numerous. For an Example of an Account in a Retail Ledger, see Appendix under " Ledger." SINGLE ENTRY. 13 Example. If the first entry in the Day -Book is — January 1, 1850. George Innes, Liverpool. To 20 Yards Black Silk @ 3/6 „ 12 „ Velvet „ 11/ 10 You write George Innes's name in a page of the Ledger, and post the entry as follows : — George Innes, Liverpool. Dr. Cr. 1850. Jan. To Goods... • page of the Day- Book. The figure 1, at the margin of the entry in the Day-Book, in- dicates the page in the Ledger to which it is supposed to be posted. POSTING THE INVOICE-BOOK. The Invoice-Book is posted in the same way as the Day-Book — each entry to its proper account in the Ledger. All the entries are posted to the Cr. of the different persons, using the words " By Goods." Thus, if the first entry in the In- voice-Book is — January 1, 1850. James Stewart & Co., Leeds. By 50 Yards Black Cloth @ 13/ „ 20 „ Brown do ,,12/ 44 10 d. An account is opened under the name of " James Stewart & Co., Leeds," and the entry is posted as follows : — James Stewart & Co., Leeds. Dr. Cr. 1850 Jan By Goods ... * page of the luvoice-Book. 14 BOOK-KEEPING. POSTING THE CASH-BOOK. The entries, on the Received side of the Cash-Book, are posted to the Cr. of the persons from whom, or the transactions on account of which, the cash has been received ; and the entries, on the Paid Cash Received. 1850 Jan, 20 J. Adams — Cash at commencement This is posted to the Cr, of an account to be opened under your own name, using the words, " By Cash." James Brown, George Street This entry for cash and discount is posted to the Cr, of J. Brown's account, using the words, " By Cash £4, 15s. Od. ,, Discount.... 4s. 6d. Union Bank This entry is posted to the Cr, of the Bank. Goods — Cash Sales Tlie various entries for Cash Sales are, at the end of the month, noted on a piece of paper, and the amount posted to the Cr. of an account to be opened under the head of " Goods." See page 71. Bills Receivable, No.l, £172, lis. discounted This entry is not posted to any account it requires, however, to be marked in the Bill -Book: see page 10. A mark / is made on the margin to show that this has been done. Discount. The discount columns are added up at the end of the month, and the amount deducted from the Cr. of the account for •' Goods." See pages 22 and 71. Discount £ s. d. 12 Cash. £ 1000 110 172 1289 15 SINGLE ENTRY. 15 side, to the Br. of the persons to whom, or the transactions on account of which, the cash has been paid. The figures on the margin, indicate the pages in the Ledger to which the entries have been posted. Cash Paid. 1850 Jan, 20 30 Union Bank This entry is posted to Bank, using the words, *' Trade Expenses- the Br. of the To Cash." -J. Smith's salary. Carriages Rent and Taxes... These and all nimilar entries for the expenses of the business, are, at the end of the month, noted on a piece of paper, and the amount posted to an account to be opened under the head of " Trade Expenses," using the words, "To Cash — Rent, Salaries, &c." See page 68. Shop Furniture — J. Anderson's acct. This, and all similar payments, are posted to an account to be opened under the head of " Shop Furniture," using the words, " To Cash." See page 67. John Adams This sum, received by yourself, is posted to the Br. of your own account. John Miller, Edinburgh This entry for cash and discount is posted to the Br. of John Miller, using the words, "To Cash £32, 18s. (id. ,, Discount ' 178. Ud.' Goods— Cash Purchases The various entries for Cash Purchases are, at the end of the month, noted on a piece of paper, and the amount posted to the Br. of the account for '* Goods." Bills Payable, No. 1 This entry is not posted to any account : it requires, however, to be marked in. the Bill -Book: see page 10. A mark / is made on the margin to show that this has been done. Cash on hand Discount. The discount columns are added up at the end of the month, and the amount deducted from the Br. of the account for " Goods." See pages 22 and 70. Discount 17 Cash. 990 3 33 107 15 32 100 1289 6 10 18 15 -^>' 16 BOOK-KEEPING. POSTING THE BILL-BOOK. Bills Receivable. — Each entry of Bills Receivable is posted to the O. of the person from whom the bill has been received. Thus, if the first entry is — No. When Reed. 1850. Jan. 2. From whom Reed. G. Innes, Liverpool. 1850. Jan. 1. Term When Due. Entered in Cash-Book 1850. Feb. 4. 1850. Jan. 10. The entry is posted to the Cr. of George Innes, using the words, *' By Bill due Feb. 4, £100." The page of the Ledger to which the entry is posted is marked on the margin. Bills Payable, — Each entry of Bills Payable is posted to the Dr, of the person to whom the bill has been granted. Thus, if the first entry is — No. When Accep. To whom Granted. Amount. Date. Term When Due. Entered in Cash-Bk. 8 1 18.50. Jan. 4. J.Stewart & Co., Leeds £ 300 s.\d. 1850. Jan. 4. 1 mo. 1850. Feb. 7. 1850. Feb. 7. The entry is posted to the Dr. of J. Stewart & Co., using the words, " To BiU due Feb. 7, £300." Miscellaneous Eemarks as to Posting. After all the books have been posted, or at any stated conve- nient time, each entry in the Ledger should be compared with the original entry in the book from which it was taken, to ascertain that it has been posted correctly. When the page assigned to any account in the Ledger is filled up, add the money columns at the bottom, and transfer the sums to a new page, where the person's name must be written as before. If a person who is owing an account becomes insolvent, and pays a composition, enter in the Cash-Book the sum he pays, as a composition of so much a pound, and after posting it to his credit, carry the balance still due, to an account to be opened under the head of " Bad Debts." To this account are also transferred all other " bad debts" — that is, accounts of which you are unable to obtain payment from the parties. SINGLE ENTRY. 17 It is of little consequence in what order the accounts are posted into the Ledger ; for convenience, however, it is desirable to keep the Dr. accounts, being those posted from the Day-Book, in one portion of the Ledger, and the Cr. accounts, being those posted from the Invoice-Book, in another portion. When the Cr. accounts are numerous, they may be kept in a separate Ledger. In extensive concerns, it is usual to have several Ledgers, for the different branches of the business, such as a Town Ledger, a Coun- try Ledger, a Foreign Ledger, a Commission Ledger, &c. &c. bALANCING THE LEDGER. To ascertain, at the end of the year, or at any other time that may be most convenient, what is the sum -total of the various accounts owing by you, and owing to you, it is necessary to add up both sides of all the accounts in the Ledger, and to mark how much is the Dr. or Cr. balance of each. This is termed " Balancing the Ledger." When it is found that both sides of an account are equal, rule it off as settled. Accounts may also be ruled off as settled, at any time when entries are made which equalise the two sides. Example. James Brown, 75 George Street. Dr. Cr. 1850. Jan. To Goods.. „ do. .. 19 1850. Jan. By Cash ,, Discount.. £ s. 1 4 15 4 ' 19 When the Dr, side of an account is the greater of the two, enter the difference on the Cr. side, using the words, '* By Balance for- ward," then rule off the account as balanced, and enter below, on the Dr. side, the Dr. balance, using the words, " To Balance." Example. Alexander Paterson, London. Dr, Cr. 1850. Jan. Feb. Mar. To Goods.. „ do. .. „ do. .. Mar. 3 To Balance.. £ s. d. 1850. 2 3 6 Jan. 20 6 65 2 10 9 2 12 Mar. 3 71 10 67 14 10 By Cash ,, Discount ,, Balance forward 18 BOOK-KEEPING. When the Cr. side is the greater of the two, enter the difference on the Dr, side, using the words, " To Balance forward," then rule off the account as balanced, and enter below, on the Cr, side, the Cr. balance, using the words, " By Balance." Example. Thomas Thomson, London. Dr. Cr, 1850. Feb. Mar. To Bill due Mar 31. ,, Balance forward 1850. Feb. |28 Mar. 10 Mar. 30 By Goods.... „ do. ... By Balance £ s. 4 53 13 5 33 10 87 3 •,5-7 3 When there are entries on only one side of an account, balance it off, by carrying forward the sura-total to the Dr. or Cr. of the next account, as the case may be ; or the account may be merely added up. In actual business, it is unnecessary to balance off unsettled accounts in the way now stated. It is sufficient to add up the columns, and mark the Dr. and Cr. balances in a temporary way with a pencil ; ruling off the accounts only when they are actually settled. After the accounts have been balanced off, the various balances should be carefully examined, to ascertain that they have been correctly brought forward. It is common, in balancing, when there is a blank space on one side of the account, to draw a diagonal line across it, in the manner shown at page 69. TAKING STOCK. An Inventory of Stock in trade should-'he taken at legigt once a year, with the view of ascertaining the state of your affairs. All the particulars of the goods on hand, for sale, are copied into a book kept for the purpose, termed " The Stock-Book." The goods are valued at cost price, or, when necessary, at a per centage below cost price, to allow for bad stock, or depreciation in value. Stock of a more permanent nature — such as buildings, shop- furniture, &c. — does not require to be entered in the Stock-Book, as its value is ascertained from the accounts opened in the Ledger under these heads, and is from thence entered into the Balance Sheet. In such accounts, a yearly deduction of 5 or 10 per cent, requires to be made from the original cost, to allow for deteriora- tion, or tear and wear. See Shop Furniture, page 67. SINGLE ENTRY. 19 BALANCE SHEET. To ascertain the state of affairs at the end of the year, or at any- other convenient time, it is necessary to draw out a "Balance Sheet" — that is, a statement showing how much is owing to you, and by you; also the amount of cash, bills, and stock on hand, and what is the balance, if any, in your favour. To do this, open an account in the Ledger, under the head of Balance Sheet, and make the following entries on the Di\ and Or. sides : — On the Dr. side. The amount of accounts owing hy you, as ascertained from the Ledger, deducting the probable amount of discount that will be allowed at settlement. The bills owing hy you, as ascertained from your Bill-Book. On the Cr. side. The amount of goods on hand, as per inventory in Stock-Book. The value of shop furniture, as per Ledger. The amount of accounts owing to you, as per Ledger, deduct- ing the discount to be allowed at settlement. The amount of bills owing to you, as per Bill-Book. The amount of cash on hand, and in Bank. Then add up the two sides, and the difference between them will show the amount of your capital at the time of balancing. This sum is filled into the Dr. side, as " Balance, nett capital," and the account is ruled off as balanced. Example. Balance Sheet of John Adams. Dr. Cr. 1850-! £ *. d. 1850. £ s. d. Dec. 31 To Accounts due by Dec. 31 By Goods on hand.. 410 J. Adams..£200 ,, Shop Furniture. 12 95 less discount 10 m ,, Accounts due to „ Bills due by J. A. ,, Balance, nett capital 160 1150 J. Adams £300 less discount 15 „BilIsduetoJ.A. 285 200 The sums-total only of ,, Cash in Bank... 12 500 the Dr. and Cr. accounts are entered in the Ba- ,, Do. on hand, per lance Sheet: the parti- Cash-Book 10 culars are filled into the " Account-Book," see p. — — — — 72. When the names are 1500 jO _0 1500 numerous, they should be MTitteu in alphabeti- cal order. 20 BOOK-KEEPING, PROFIT. To ascertain the profit, if any, that has been gained during the year, open an account under the head of " Profit," or " Profit and Loss," and enter as follows : — On the Dr. side. The amount of your capital at January 1, being the cash em- barked by you in the business, as ascertained from your account in the Ledger — or from the previous Balance-Sheet. Interest at 5 per cent, on the amount of capital. The interest is charged, in order to show what is the profit, after allow- ing 5 per cent., on the capital. Profit, strictly speaking, being, not the total gain, but only what is gained over and above 5 per cent, on the capital. On the Cr, side. The amount of your capital at December 31, as shown by the *' Balance Sheet." The amount of cash taken by you for your own use during the year, as ascertained from your account in the Ledger. Then add up the two sides ; and if the Cr. amounts to more than the Di\ side, the difference is the profit for the year, and is carried to the Cr. of your account as "Profit." The Interest is also carried to the Cr. of your account. If the Dr. side is the greater of the two, the difference is the loss, and is carried to the Dr. of your account as " Loss." Example. PROFIT (OR, Profit and Loss). Dr. Cr. 1850. Jan. Dec. To Capital at this date ■S '^ , , Interest 5 qp ct.-a ^ „Profit 1^ £ s. d. 1850. Dec. 31 14 1000 14 50 " 350 1400 By Capital at this date ,, Cash to J. A. in 1850 ■ £ \s. 115o! I 250 1400 The nett profit is shown above, after paying trade expenses, &c. By adding to the nett profit the amount of expenses and bad debts, the gross profit will be ascertained ; thus : — Nett Profit £350 Trade Expenses, as per Ledger 100 Bad Debts, „ „ .50 Gross profits 500 *• Profit and Loss" is the title given to this account, when, as will be seen in Double Entry, the ** Profit" is entered on one side of the account, and the " Loss "—that is, the expenses, bad debts, &c.— are entered on the other side. SINGLE ENTRY. 21 PRIVATE ACCOUNT. Your own private account for cash paid into, or drawn from, the business, is kept and balanced in the following manner : On the Dr. side are entered — The various sums you draw from the business on your own personal account. On the Or. side are entered — The sum or capital you embarked in the business at the com- mencement, and any sums you may pay into the business afterwards. Interest 5 per cent, on your capital. The Profit (if any) gained during the year or other given period. The Interest and the Profit are hrought from the " Profit and Loss" account at the end of the year, or at any other time, when you balance your affairs. The ** Profit and Loss" account is balanced off when the transfer is made. If, instead of a profit, there has been a loss during the year, the loss is carried to the Dr. of your account. Example. John Adams. Br. Cr. 1850. Jan. Mar. June Aug. Dec. ToCash „ do „ do „ do „ do „ Balance forward £ s. d. 1850. 2 15 Jan. 1 6 50 7 100 Dec. 31 8 35 9 50 1150 1400 1851. Jan. 1 By Cash „ Interest, 1850.1 « „ Profit, „ -si By Balance.. £ 1000 1400 The Balance Sheet, the Profit and Loss Account, and the Private Account, are usually kept in a separate Ledger, termed " Private Ledger." 22 BOOK-KEEPING. ACCOUNT FOR GOODS BOUGHT AND SOLD. This is an account which, strictly speaking, belongs not to Single, but to Double Entry. As it is desirable, however, in every business to know the amount of goods bought and sold during the year, ox other given period, an account for '* Goods " has been embodied in the following Single Entry Ledger, that any one who chooses, may be enabled to adopt it. Double Entry to the extent required for this account is quite simple, and may be advantageously employed in any retail business with little additional trouble. Directions. Bay-Book. — Add up the sums-total in the outer columns, at the end of every month, as shown at page 28, and post the amounts, being the total oi goods sold on credit, to the Cr. of an account to be opened under the head of " Goods." See page 71. Invoice-Booh. — Add up the sums-total in the outer columns, at the end of every month, as shown at page 39, and post the amounts, being the total of goods bought on credit, to the Dr. of the " Goods " account. See page 70. Cash-Book. — Add up on a piece of paper, at the end of every month, the entries for Cash Sales and Purchases, and post the amounts, being the sums-total for the month, to the Dr. and Cr. of the '* Goods" account, as shown at pages 70 and 71. The whole amount of goods sold during any given time is in this way ascertained. Profit. — The Profit may be ascertained from this account as follows : — Add up the discount columns on both sides of the Cash-Book, at the end of every month, and deduct the amount of discount on the Received side, from the Cr., and on the Paid side, from the Dv, of the " Goods " account, as shown at pages 70 and 71. Deduct also, at the time of balancing your affairs, the estimated discount on unsettled accounts due to you, from the Cr. side, and on those due hy you, from the Dr. side of the " Goods" account, as shown at pages 70 and 71. Enter on the Dr. side of the " Goods " account the amount of Trade Expenses and Bad Debts ; and on the Cr. side the amount of Goods on hand. Then add up both sides of the account, and if the Cr. side be the greater of the two, the difference is the Profit gained (including interest on capital). If the Dr. side is the greater of the two, the difference shows the Loss. By ascertaining the profit in this way, the accuracy of the other account in the Ledger for Profit (page 68), and also the accuracy of the posting, will be tested, as the result of both accounts will be the same, if no errors have been committed. SINGLE ENTRY. THE BOOKS OP JOHN ADAMS, EDINBUEGH. Page DAY-BOOK, 25 INVOIGE-BOOK, - - - 38 CASH-BOOK, - - - - 44 BILL-BOOK, .... 50 STOCK-BOOK, .... 54 WAKEHOUSE-BOOK, - - 73 LEDGER, 55 ACCOUNT^BOOK, - - . 72 24 BOOK-KEEPING. DIRECTIONS. In writing the following course, the pupil should, as far as possible, proceed with the various books simultaneously, as if he were engaged in actual business. It would be inconvenient to do so to the full extent, by writing the entries of each day at a time in the different books : this is done in business, but it will be sufficient here to copy the entries of a month at a time. The Day -Book, Invoice - Book, Cash-Book, and Bill-Book for January, should first be copied ; all the entries in each book on Jan. 1, should then be posted into the Ledger, then those on Jan. 2, and so on with the entries of every succeeding day. The entries for February and March should be copied and posted successively in the same manner. After the entries for a month have been posted, they should be compared with the corresponding entries in the Ledger, to ascer- tain that the posting is correct. This is usually done by two indi- viduals. One person calls over, one by one, the entries of the book to be compared — for instance, the Day-Book — and the other turns up the Ledger, and makes a mark J at each entry there, on find- ing it correctly posted. The mode of rectifying some of the errors apt to occur in posting will be seen in the accounts of J. Lindsay, page 57 ; D. Falconer and T. Murray, page 58. In posting, the figures on the margin of the Day-Book, &c. should be written in a slanting position, as shown in the first page of the Day-Book. Great care should be taken to enter correctly the original sums in the Day-Book, &c., as errors made at first are of course per- petuated in the Ledger, and are not easily detected. Two books of a foolscap size should be employed for writing out the following set : — I. The first, consisting of about 36 pages, or 9 sheets, to contain — Bill-Book 4 pages. Stock-Book > Warehouse-Book ) The Day-Book 16 pages. Invoice-Book.... 9 „ Cash-Book 6 „ Each page to be ruled with about 36 lines across, exclusive of the head-line. 11. The other, consisting of about 20 pages, or 5 sheets, to contain — The Ledger 19 pages. | Account-Book.... 1 page. The first 12 pages of the Ledger should be ruled with Dr. and Cr. columns, as in the printed pages, being the common form in business, and with about 36 lines across. If, for the sake of more space, the Dr. and Cr. sides of the accounts are placed in two opposite pages, like the accounts at page 68, the Ledger will occupy about 32 pages, or 8 sheets. Any one who wishes to shorten the course, can easily do so by transcribing the amounts only, instead of the particulars, of as many of the entries in the Day-Book, &c. as may be desired. 0) SINGLE ENTRY. 25 THE DAY-BOOK.* Edinburgh^ January 1, 1850. James Brown, 75 George Street. To Eussell's Modem Europe, 4 vols. 8vo. cloth. „ Byron's Works, 1 vol. royal 8vo. cloth. George Innes, Liverpool. To 6 Pieces Black Silk,* 306 yds. 3/6 „ 12 „ French Merino, 360 „ 5/6 „ 10 „ Mous.deLaine,320 „ 1/3 • that is, 6 pieces measoring 306 yards, at Ss. 6d. a yard. —2d.— William Hunter, Princes Street. To 6 lbs. Black Tea 5/ „ 1 „ Green do 6/ „7 „ Loaf Sugar 8d. » 2 „ Coffee 2/ Richard Porteous, Bristol. To 8 Pieces Black Satin, 240 yds. 8/6 „ 2 „ Satin Ribbon, 50 „ 1/9 „ 15 „ Gingham, 420 „ 1/2 — 3rf.— James Brown, 75 George Street. To 1 Ream Small Post Paper „ 1 Box Steel Pens Charles Chadwick, Manchester. To 10 Pieces Welsh Flannel, 480 yds. 1/10 „ 24 Pair Blankets 18/ Carried over • For another form of the Day-Book, seepage 37. £ s. d. £ s. 2 10 1 3 10 53 11 99 20 172 11 1 10 6 4 8 4 2 4 102 4 7 6 24 10 130 17 1 5 4 6 1 9 44 21 12 65 12 376 4 26 DAY-BOOK. January 3, 1850. (2) Brought over. . William Bell, Leeds. To 5 Pieces Silk Velvet, 160 yds. 11/6 „ 8 „ Linen Sheeting, 4 16 „ 3/2 —^tK— Thomas Bladworth, Hull. To 12 Pieces Irish Linen, 348 yds. 2/9 „ 5 „ German Lawn, 65 „ 3/3 --6th.— George Innes, Liverpool. To 12 Pieces Gingham, 372 yds. 1/6 „ 10 „ TwUled Cotton, 420 „ 8jd, James Lindsay, Aberdeen. To 35 Pieces French Cambric, 450 yds. 6/6 ,, 5 „ Mous. de Laine, 160 „ l/l —7th,— William Bell, Leeds. To 6 Dozen India Silk Handkerchiefs.. 54/ „ 60 Pair Kid Gloves 3/ Alexander Paterson, London. To 1 Silk Umbrella „ 6 Yards German Lawn 3/3 „ 4 India Silk Handkerchiefs 5/3 „ 2 Pair Kid Gloves 3/6 David Falconer, Dublin. To 6 Beams Demy Printing Paper. 16/ „ 10 „ Royal do. 18/ „ 2 „ Wove Foolscap 13/ Carried forward 376 4 92 65 17 4 157 17 47 10 17 11 3 58 8 27 14 18 17 6 42 15 146 8 5 13 4 154 18 16 9 4 25 4 1 18 19 1 7 6 6 3 6 4 9 1 16 6 15 2 16 833 (3) SINGLE ENTRY. January 10, 1850. 27 Brought forward., Charles Chad wick, Manchester. To 5 Pieces Sup. Black Cloth, 100 yds. 19/ „ 3 „ „ Olive do. 62 „ 18/6 „ 4 „ „ Brown do. 83 „ 17/ Wrapper Thomas Murray, Leeds. To 25 Pieces Printed Cotton, 750yds. lOd. „ 5 „ Irish Linen, 140 „ 2/2 —Uth.— Richard Porteous, Bristol. To 60 Yards Carpeting 2/9 „ 50 „ Printed Drugget 2/7 James Brown, 75 George Street. To 10 lbs. Sugar e^d. „ 6 „ White Soap 7d. Charles Smith, Glasgow. To 12 Pieces French Merino, 360 yds. 5/6 „ 5 „ Black Satin, 154 „ 9/6 Wrappers William Wilson, London. To 6 Cowper's Poems, 18mo., cloth... 2/ „ 2 Edgeworth's Moral Tales 5/ — 20 8 5 13 7 9 12 13 13 14: 17 13 20 12 »> 10 »» 12 «» y 21 13 27 13 »» 12 31 14 >» Union Bank Goods — Cash Purchases Trade Expenses — Salaries (or wages) In actual business, the names of the persons to whom salaries or wages are paid are entered in the Cash-Book : it is, however, unnecessary to do so here. An example is given, in the entry of Jan. 27, "J. Smith's Salary," which applies to all such cases. Trade Expenses — Carriages „ „ Poor-rates Ed. Johnston & Co., Manchester Trade Expenses — Postage Stamps Robertson & Simpson, Glasgow.. Trade Expenses — Salaries Goods — Cash Purchases Trade Expenses — Salaries Shop Furniture, J. Anderson's ajc John Miller, Edinburgh Union Bank Bills Payable No. 2 Irade Expenses — J. Smith's salary for 1 month John Adams Union Bank . Cash on Hand Discount Deducted from the Dr. of the " Goods" acct. Discount. 17 17 Cash. 990 3 3 3 107 203 3 4 3 107 32 17.5 260 4 20 90 20 2033 12 6 Note.— Instead of the dates being placed on the margin of the Cash-Book, as above, it is usual in business to place them in the centre of the page, as in the Uay-Book. The same dates require to be placed opposite each other on the Received and Paid sides. January 1 opposite January 1, January 2 opposite January 2, and so on. For an example of this, and of a convenient method of balancing the Cash- Book daily, see Appendix, under the head of " Cash-Book." Petty C ash-Book. — Besides a Cash-Book, a " Petty Cash-Book" is often used, for entering the various small sums received and paid daily. (See Appendix.) 46 CASH-BOOK. (3) Cash Received. 1850 Feb. 12 ?j 16 25 j> 28 Cash on hand Goods — Cash Sales William Hunter, Princes Street... Thomas Bladworth, Hull Goods — Cash Sales Union Bank James Taylor, High Street — Com- position of 10/ a £1 Bills Receivable, No. 2, discounted,* £54, 18s. 4d. David Anderson, Glasgow Union Bank Goods — Cash Sales Robert Cook, Liverpool George Innes, Liverpool Goods — Cash Sales Charles Smith, Glasgow .'. Discount * Bills— The Bills Receivable entered in the Cash-Book are supposed to be discounted at the Bank. Bills are, h owe ver, often not discounted, but paid away, sometimes at their full value, to other merchants in settlement of their accounts. In such cases they would be entered thus^ On the Received side- Bills Receivable, No. 2 54 18 4 On the Paid side— J. Anderson, Hull, Bills Receivable, No. 2 54 18 4 In business, the names as well as the Nos. of the Bills, are marked in the Cash-Book. Thus— BUls Receivable, No. 1, G. Innes, Liverpool 172 11 Bills Payable, No. 1, J. Stewart & Co. Leeds 315 11 2 Discount. 12 10 11 821 13 w SINGLE ENTRY. 47 Cash Paid. 1850 Feb. Goods — Cash Purchases Trade Expenses — Salaries Union Bank Trade Expenses — Shop Kent „ „ Carriages „ „ Police Tax Bills Payable, No. 1 Walter Kennedy, Paisley Trade Expenses — Salaries James Dalton, London Trade Expenses — Washing Shop. Goods — Cash Purchases Union Bank Trade Expenses — Salaries » )> do John Adams Trade Expenses — Carriages Alexander Jardine & Co. Leith .. Cash on hand. Discount.. Discount, 10 15 18 Cash. 1 3 70 35 1 315 17 3 93 5 40 4 4 20 190 13 821 13 48 CASH-BOOK. (5) Gash Received. 1850 Mar. 14 5 2 14 y 2 12 14 4 6 14 8 12 7 y 14 6 14 21 25 30 Cash on Hand Goods — Cash Sales William Hunter, Princes Street... Thomas Blad worth, Hull Goods — Cash* Sales Bills Receivable, No. 4, discounted, £157, 17s. 4d. James Lindsay, Aberdeen Union Bank Goods — Cash Sales D. Anderson, Glasgow George Ross, Dublin Goods — Cash Sales Alex. Morrison, Greenock Union Bank Thomas Bennett, London Bills Receivable, No. 7, discounted, £92, 15s. Od. Goods — Cash Sales George Ross, Dublin Discount. Discount., 13 7 (6) SINGLE ENTRY. 49 Cash Paid. 1850 Mar. 17 21 22 30 31 Cash. Goods — Cash Purchases Trade Expenses — Carriages „ „ Salaries Alex. Hunter, Manchester John Adams Trade Expenses — Freight from London George Brooks, London Union Bank Trade Expenses — Postage Stamps Goods — Cash Purchases Bills Payable, No. 3 Trade Expenses— Salaries » » Gas Goods — Cash Purchases Union Bank Trade Expenses — Salaries John Adams Bills Payable, No. 6 Allan and Bell, London Cash on hand Discount, 12 4 45 40 135 58 7 150 4 1 3 80 4 10 30 22 22 50 BILL-BOOK. (1) Bills No. When received From wliom Received. Amount. Date. Term. When Due. Entered in Cash-Bk. 1850. 1850. 1850. 1850. 1 1 Jan. 2 G. Innes, Liverpool. 172 11 Jan. 1 1 mo. Feb. 4 Jan. 20 2 2 „ 12 J. Lindsay, Aberdeen. 54 18 4 „ 10 3 „ AprU13 Feb. 7 2 3 „ 18 C. Chadwick, Manchester. 288 17 6 ,, 17 2 „ Mar. 20 Jan. 21 2 4 „ 31 W. BeU, Leeds. 157 17 4 „ 26 3 „ April 29 Mar. 3 2 5 Feb. 10 J. Lindsay, Aberdeen. 100 Feb. 7 6 „ Aug. 10 5 6 „ 16 J. Durham, Bristol. 100 ,, 14 4 „ June 17 2 7 „ 19 W. Bell, Leeds. 92 15 ») jj 2 „ AprU17 Mar. 21 5 8 „ 25 J. Durham, Bristol. 50 » 22 3 ,, May 25 3 9 Mar. 1 T. Murray, Leeds. 46 16 2 „ 28 2 „ May 1 3 10 » 4 C. Smith, Glasgow. 89 12 2 Mar. 3 3 „ June 6 ,!^ ^ 11 „ 19 J. Watt, Birmingham. 37 11 2 „ 18 2 „ May 21 1 s 6 12 „ 20 J. Lawson, Bristol. 54 3 3 j> JJ 2 „ May 21 6 1 .2 7 13 „ 25 W. Edmonds, Newcastle. 44 14 4 „ 24 1 JJ April27 8 14 „ 27 D. Mitchell, Liverpool. 90 17 8 „ 26 3 „ 1 1 a ii a .3 1 1 i i .2 a it — June 29 1 cS §1 ^^ =3 .a ii r. i S| (2) SINGLE ENTRY. 51 JReceivahle, By whom Drawn. On whom Drawn. To whom Payable. Where Payable. J, Adams. J. Lindsay. G. Innes. \V. Gray. J. Adams. J. Lindsay. Liverpool. Aberdeen. 20 13 29 10 These columns are used in business for entering the particulars shown in the above examples : it is unnecessary here, however, to fill up the other blanks. These columns are used for ascertaining readily the dates when the bills are due. 52 BILL-BOOK. (3) Bills Wlien When Due. Entered No. Granted To wbom Granted.* Amount. Date. Term. in • Cash-Bk. 1850. 1850. 1850. 1850. 8 1 Jan. 4 J. Stewart &Co.,Leeds. 315 11 2 Jan. 4 1 mo. Feb. 7 Feb. 7 9 2 ,, 8 R. Gray, Bradford. 260 5 » 8 10 da. Jan. 21 Jan. 21 lO 3 Feb. 12 Ainslie & Sons, Liverpool 150 Feb.l2 1 mo. Mar. 15 Mar. 16 8 4 „ 22 Johnston & Co. Mancbest. 200 ,, 22 3 ,, May 25 i 8 6 » 27 Stewart & Co., Leeds. 51 5 „ 27 6 ,, Aug. 30 U 6 „ 28 T. Thomson, London. 30 „ 28 1 » Mar. 31 Mar. 31 9 7 i> ii A.Jardme&Co.,Leith. 100 j» » 2 „ May 1 8 8 Mar. 2 Johnston & Co. Mancbest. 153 8 7 Mar. 2 2 „ May 5 lO 9 » 5 T. Graham, Belfast. 100 9 » 5 1 » April 8 12 10 „ 19 R. Todd, Glasgow. 29 7 6 „ 19 3 „ June 22 lO 11 » 24 Ainslie & Sons, Liverpool 100 » 24 2 ,, May 27 9 12 „ 30 R. Gray, Bradford. 186 14 6 „ 30 1 » May 3 *0r, * Or, S 13 accepted By whom Drawn. il (4) SINGLE ENTRY. 53 Payable, To whom Payable. Stewart & Co. J. Brown. I Wliere Payable. Union Bank, Edinburgh. Do. do. These columns are used in business for entering the particulars shown in the above examples : it is unnecessary here, however, to fill up the other blanks. 25 These columns are used for ascertaining readily the dates when the bills are due. 64 STOCK-BOOK. (1) Goods on hand, March 31, 1850. 4 Pieces Superfine Black Cloth, 80 yds 13/7 2 „ „ Brown do. 40 „ 14/5 6 „ Printed Cotton, 180 „ 7d. 5 „ Scotch Cambric, 60 „ 1/5 1 „ Irish Linen, 28 „ 2/ 3 „ Gingham, 90 „ 9d. 3 „ Welsh Plannel, 60 „ 1/6 20 Yards Muslin 1/2 20 „ Black Silk 2/9 4 Silk Umbrellas 12/6 10 Reams Printing Demy Paper 12/8 2 Com stock's Natural Philosophy 3/6 3 Gibbon's Rome, 5 vols. 8vo 42/ 1 Chest Congou Tea, 80 lbs 3/6 1 Tierce Coffee, 5 cwt 130/8 1 Pipe Port Wine 2 Hhds. Sugar, 28 cwt 42/ Sundries an a real inventory all the particulars are given.) 54 6 28 16 5 5 4 5 2 16 3 7 4 10 1 3 2 15 2 10 6 6 7 6 6 14 32 13 65 58 16 100 9 393 13 — Goods on Commission from Allan S; Bell, London, on hand March 31, 1850. Sundries., These goods, all the particulars of which would be given in a real inventory, are not entered along with John Adams* own goods, as they belong to Allan & Bell, the parties who sent them on sale. Tlie Warehouse-Book at page 73, to be writteu out here, next to the Stock-Book. L E D G E K. INDEX. Anderson, D Glasgow 4 Alison, John Frederick St. 5 Allan & Bell London 9 Ainslie & Sons Liverpool.... 10 Adams, John 13 Brown, James George St... 1 Bell, William Leeds 2 Bladworth, T Hull 2 Bennett, Thomas London 7 Brooks, George London 11 Bad Debts 13 Balance Sheet 14 Chad wick, C Manchester. 2 Cook, Robert Liverpool... 4 Cameron, James Dundee 6 Durham, James Bristol 5 Davidson^ Charles . . . Charlotte St. 7 Dalton, James London 10 Edmonds, William . . . Newcastle ... 7 Falconer, David Dublin 3 Goods 14 Gray, Robert Bradford 9 Graham, Thomas. ...Belfast 10 Hunter, W Princes St. 1,5 Hume, Robert Carlisle 6 Union Bank.. Hunter, Alex Manchester. 1 1 Johnston, E., & Co...Manchester. 8 Jardine & Co Leith 9 Kennedy, Walter Paisley 11 Lindsay, James Aberdeen.... 2 Lawson, John. Bristol 6 Murray, Thos Leeds 3 Milne, James London 7 Morrison, Alex Greenock ... 8 Mitchell, David Liverpool.... 8 Miller, John Edinburgh...lO Porteous, R Bristol 1 Paterson, Alex London 3 Profit 13 Ross, George Dublin 6 Robertson &Simpson Glasgow 9 Smith, Charles Glasgow 3 Stewart, J., & Co Leeds 8 Shop Furniture 12 Taylor, James High St 4 Thomson, T London 11 Todd, Robert Glasgow 12 Trade Expenses 13 Innes, George Liverpool. ... 1 .12 Wilson, William London 4 Watt, James Birmingham 5 56 LEDGER. James Brown, 75 George Street. 1850. Jan. Feb. 1 3 11 17 To Goods „ do » do „ do 1 j» 3 7 £ 3 1 s. 10 9 8 10 d. 6 11 3 1850. Jan. Mar. 3 17 31 By Cash „ Discount.. „ Cash „ Discount.. „ Balance* 1 5> £ 4 s. 15 4 8 10 d, 6 6 5 3 5 18 8 ^ or. 5 18 8 Mar. 31 To Balance t 10 3 Balance forward. George Innes, Liverpool. 1850. Jan. Feb. Mar. 1 6 6 14 31 To Goods „ do „ do » do To Balance... 1 2 5 11 172 42 24 15 255 11 15 8 15 9 6 3 9 1850. Jan. Feb. Mar. 2 25 31 By Bill due Feb. 4.... „ Cash „ Discount.. 5, Balance... 1 3 172 65 1 15 255 11 10 13 15 9 9 9 Mar. 15 15 William Hunter, Princes Street. 1850. Jan. 2 27 Feb. 6 To Goods do do to page 5 carried to p. 5, as this space is filled up. 1850. 1 2 4 8 Feb. 1 4 1 10 3 ,, 5 28 10 32 4 11 By Cash, Discount.. to page 5 3 3 11 » 3 3 14 Richard Porteous, Bristol. 1850. Jan. Mar. 2 11 3 To Goods J, do „ do 1 3 9 130 14 19 164 17 14 3 14 6 2 3 11 1850. Jan. Mar. 12 31 By Cash „ Discount.. „ Balance... 1 138 7 19 164 6 5 3 14 8 3 11 Mar. 31 To Balance... 19 3 3 fin business, it is unnecessary to balance off unsettled aocouiits in this way. It is sufficient merely to add up the columns, marking the Dr. or Cr. balances in a temporary way with a pencil, aod ruling off the accounts only when they are actually settled. (2) SINGLE ENTRY. Charles Chadwick, Manchester. 67 1850. Jan. Mar. Mar. 31 To Goods, do. . do. . To Balance... 1850. 1 65 12 Jan. 18 3 223 5 6 13 111 4 Mar. 31 400 1 6 111 4 By Bill due Mar. 20., Balance... 288 HI 400 William Bell, Leeds. 1850. Jan. Feb. To Goods. ,, do. „ do. „ do. 157 25 2 65 250 1850. Jan. Feb. By Bill due April 29. ,y Bill due April 17. 157 92 250 Thomas Bladworth, Hull. 1850. Jan. Feb. To Goods, „ do. , „ do. , 1850. 2 58 8 3 Feb. 5 4 2 7 >» 8 15 18 9 Mar. 1 76 14 By Cash, Discount.. Cash Discount.. 3 57 15 „ 3 5 15 3 »» 15 76 14 James Lindsay, Aberdeen. 1850. Jan. Feb. To Goods*.... „ do » do „ do „ do. Jan. 6, underposted 1850. 2 144 18 4 Jan. 12 5 11 2 7 10 8 Feb. 10 8 6 2 3 Mar. 6 10 " 182 10 7 By Bill due April 13. Bill due Aug. 10,. Cash Discount.. 54 100 26 182 10 7 • Posted incorrectly, to show the mode of rectifying the error. See entry, Feb. 25. 58 LEDGER. Alexander Paterson, London. (3) 1850. Jan. Feb. Mar. 7 9 3 31 To Goods )) do » do To Balance... 2 6 9 3 65 2 71 67 6 2 12 14 10 10 10 1850. Jan. 20 By Cash „ Discount.. „ Balance... 1 3 67 71 3 3 14 10 10 Mar. David Falconer, Dublin. 1850. Jan. Feb. To Goods. „ do... „ do... „ do- Mar. 31 To Balance... 1850. 2 15 2 Jan. 7 5 13 3 Mar. 31 6 4 16 6 8 3 3 8 » 36 2 5 11 5 By Cash.... „ Goods, Feb.i, overpostedL „ Balance... 15 36 • Posted incorrectly, to show the mode of rectifying the error. See entry on Cr. side. Thomas Murray, Leeds. 1850. 1850. Jan. 10 To Goods 3 46 8 4 Jan. 31 By Cash & disc. 1 92 8 20 » do 3 45 12 4 Mar. 1 „ Bill due Feb. 25 „ do 8 46 16 2 Mayl... 1 46 16 2 Mar. 1 „ do * 9 139 6 3 11 9 „ Goods- posted in error, carried to W. Hunter's acct. 5 139 6 3 11 9 • Posted incorrectly, to show the mode of rectifying the error. See entry on Cr. side. Charles Smith, Glasgow. 1850. Jan. Feb. To Goods, do... do... do.., 172 8 16 73 270 1850. Feb. Mar. By Cash Discount. Bill due June 6... 176 4 270 12 (4) SINGLE ENTRY. William Wilson, London. 1850. Jan. Feb. To Goods.. „ do. .. „ do. .. W. Wilson having become insolvent, is able to pay only a part of his a/C The balance is car- ried to the a/ C for "Bad Debts," 18.50. Jan. Mar. By Cash „ Balance, carried Bad Debts, page 13.. 59 James Taylor, High Street. 1850. Jan. To Goods.. „ do. .. 1850. 4 2 5 Feb. 7 4 5 8 » 7 13 By Cash Balance, carried to Bad Debts, page 13 David Anderson, Glasgow. 1850. Jan. 20 Feb. 5 Mar. 6 To Goods do. do. 1850. 4 9 5 6 Feb. 12 5 23 11 11 9 56 10 9 Mar. 7 »» 89 7 3 By Cash, Discount.. Cash, Discount.. 3 31 4 » 1 12 5 55 2 j» 1 8 89 7 Robert Cook, Liverpool. 1850. Jan. Feb. To Goods.. „ do. .. 1850. 4 11 8 Feb. 16 6 25 •5 " 36 13 By Cash Discount., 36 13 60 (5) James Durham, Bristol. 1850. Feb. Mar. Mar. 31 To Goods „ do. , „ do. To Balance... 1850. 5 5 6 Feb. 16 6 279 11 9 11 30 10 3 Mar. 25 31 315 8 165 8 By Bill due June 17. Bill due May 25. Balance... William Hunter, Princes Street. 1850. 1850. — — from page 1 32 4 11 from page 1 3 14 11 Feb. 17 To Goods 6 2 7 4 Mar. 1 By Cash 5 29 13 Mar. 1 » do 9 34 . 6 19 11 2 „ Discount.. J) 1 34 11 3 2 James Watt, Birmingham. 1850. Feb. To Goods., „ do. .. 1850. 7 1 6 2 8 36 5 Mar. 19 37 11 2 By Bill due May 21. John Alison, Frederick Street. 1850. Feb. Mar. Mar. 31 To Goods.. „ do. .. To Amount forward. 15 15 16 16 1850. Mar. 31 By Amount forward, (6) SINGLE ENTRY. Egbert Hume, Carlisle. 1850. Feb. Mar. Mar. 31 To Goods do. do. To Amount forward. 7 11 12 18 6 4 29 17 2 6 6 1850. Mar. 31 29 By Amount forward. 29 George Ross,- Dublin. 1850. Feb. Mar. To Goods., „ do. ., 1850. 8 10 12 6 Mar. 8 13 14 18 6 30 25 11 By Cash do Discount. 10 14 25 John Lawson, Bristol. 1850. Mar. 1850. 9 14 13 Mar. 20 10 39 10 3 54 3 3 By Bill due May 21 54 54 James Cameron, Dundee. 1850. Mar. Mar. 31 To Goods „ do. „ do. „ do. To Amount forward. 1850. 9 2 11 6 10 3 7 6 n 75 12 160 2 6 — Mar. 31 241 1 6 241 1 6 By Amount forward. 241 62 LEDGER. William Edmonds, Newcastle. 1850. Mar. To Goods., „ do. .. 1850. 9 41 4 Mar. 25 12 3 14 44 14 4 By Bill due April 27. Thomas Bennett, London. 1850. Mar. To Goods.. 10 19 19 10 10 1850. Mar. 21 By Cash.... „ Discount.. Charles Davidson, Charlotte Street. 1850. Mar. Mar. 31 To Goods.. do. .. To Amount forward... 1850. 10 5 13 1 11 Mar. 31 1 16 1 16 By Amount forward.. James Milne, London. 1850. Mar. Mar. 31 To Goods, do. , do. . To Amount forward.. 1850. 10 32 5 10 11 50 4 2 12 37 3 Mar. 31 119 13 119 13 By Amount forward. (8) SINGLE ENTRY. Alexander Morrison, Greenock. 63 1850. Mar, 14 To Goods.. 11 13 13 1850. Mar. 15 By Cash ,, Discount. David Mitchell, Liverpool. 1850. Mar. To Goods.. „ do. .. 11 12 65 25 1 16 8 1850. Mar. 27 90 17 8 By Bill due June 29.. 90 90 James Stewart & Co., Leeds. 1850. Jan. Feb. To Bill due Feb. 7... „ Bill due Aug. 30. 3 315 51 366 11 5 16 2 2 1850. Jan. Feb. 1 16 By Goods., do. .. 315 51 366 16 Edward Johnston & Co., Manchester. 1850. — 1850. — — Jan. 5 To Cash 2 107 14 Jan. 1 By Goods 1 42 17 9 „ „ Discount... 5 13 9 2 » do „ 70 10 Feb. 22 „ Bill due Feb. 4 » do 3 57 3 May 5... 3 200 19 )> do 4 211 9 8 Mar. 2 „ Bill due May 25. » 153 466 8 16 7 4 20 „ do >j 84 466 15 11 4 64 LEDGER. Allan & Bell, London. 1850. Mar. 31 To Goods on hand.., „ Commission „Cash.., 1850. Jan. 1 5 10 6 Feb. 20 13 2 9 6 22 1 30 6 Apr. 1 By Goods do By Goods on hand... Robert Gray, Bradford. 1850. Jan. Mar. 30 1850. To Bill due Jan. 2 Jan. 21. 3 260 5 Feb. 10 „ Bill due Mar. 15 May 3.. jj 186 446 14 19 6 6 By Goods., do. ., do. . Alex. Jardine & Co., Leith. 1850. Feb. Mar. 28 31 To Cash „ Discount. „ Bill due May 1... „ Balance. 1850. 4 190 Jan. 2 »j 10 31 3 100 180 11 2 480 11 2 — — Mar. 31 By Goods., do. .. By Balance., Robertson & Simpson, Glasgow. 1850. Jan. Mar. To Cash Discount. .. Balance.... 1850. 2 203 10 Jan. 12 5J 10 14 6 Feb. 4 100 10 25 314 14 6 Mar. 31 By Goods do. . do. , By Balance... 2 214 4 3 22 10 4 78 314 14 10 100 (10) SINGLE ENTRY. John Ainslie & Sons, Liverpool. 65 1850: Feb. Mar. 12 24 31 To Bill due Mar. 15.. „ do. May 27. „ Balance 3 150 100 52 302 5 5 2 2 1850. Jan. Feb. Mar. Mar. 15 10 19 31 By Goods » do „ do By Balance... 2 3 6 5 186 110 302 5 3 17 5 2 2 w 52 5 2 John Miller, Edinburgh. 1850. Jan. 20 To Cash „ Discount.. 33 15 1850. Jan. 20 By Goods..., 33 33 15 15 James Dalton, London. 1850. Feb. 12 To Cash „ Discount.. 98 1850. Jan. 25 By Goods., 98 Thomas Graham, Belfast. 1850. Mar. 5 To Bill due April 8... 3 100 100 9 9 1850. Feb. 1 19 By Goods » do 3 4 98 2 9 100 9 LEDGER. Walter Kennedy, Paisley. 1850. Feb. To Cash ,, Discount.. 1850. 4 17 11 Feb. 1 >» 9 18 By Goods.. Thomas Thomson, London. 1850. Feb. Mar. To Bill due March 31 „ Balance... 1850. Feb. 28 3 30 xMar. 10 57 3 87 3 Mar. 31 By Goods., „ do. . By Balance.. George Brooks, London. 1850. Mar. To Cash „ Discount. „ Balance.. 1850. 6 135 5 6 Mar. 1 i) 7 2 6 31 9 9 6 151 17 6 Mar. 31 By Goods., „ do.... By Balance.. Alexander Hunter, Manchester. 1850. Mar. 1850. To Cash 6 45 14 Mar. 1 „ Discount.. )) 1 3 8 25 „ Balance... 37 84 17 14 8 Mar. 31 By Goods., do. .. By Balance.., (12) SINGLE ENTRY. Robert Todd, Glasgow. 67 1850. Mar. 19 To Bill due June 22. 3 29 7 6 1850. Mar. 4 19 By Goods.... » do 5 6 14 14 16 11 6 29 7 6 29 7 6 Union Bank. 1850. Jan. Feb. Mar. 1 20 31 5 16 / 21 31 To Cash „ do » do „ do „ do „ do ,, do To Balance.. Interest, when allowed, requires to be charged to tlie Bank. 2 » 4 »» 6 5> 990 175 90 70 40 58 80 1850. Jan. Feb. Mar. 5 12 20 7 12 6 15 31 By Cash „ do „ do „ do „ do „ do » do „ Balance.. 1 ») >j 3 j» 5 110 60 140 320 40 20 150 663 1503 1503 Mar. 663 Shop Furniture, 1850. Jan. 20 31 To Cash This is the sum paid out for furniture. To Balance. 2 107 10 1850. Mar. 31 By Depreciation 5^ cent, carried to Trade Expenses, page 13. „ Balance. . 5 102 7 2 6 6 107 10 107 10 Mar. 102 2 6 68 LEDGER. Bad Debts. (13) 1850. Feb. Mar. 31 J. Taylor's ajc — balance... W. Wilson's ajc — balance. 19 Trade 1850. Jan. Feb. Mar. To Cash » do „ do „ Shop-Furniture — Depreciation 3 36 10 Salaries. 15 1 6 16 9 12 10 39 10 44 6 4 5 Sundries. 10 19 1 2 16 8 93 3 9 The accounts for Trade Expenses and Bad Debts are in Single Entry merely- added up, without being balanced by an entry on the opposite side : they may, PROFIT (OR, Profit and Loss). 1850. Jan. Mar. To Capital at this date, (see J. A.'s a/c, Jan. i) . .. „ Interest, January to March, carried to J. A.'s a/c- „ Profit, „ „ „ . 1000 12 294 1306 10 10 By adding to the nett profit the amount of Trade Expenses and Bad Debts, the gross profit is ascertained, as on other side. JOHN ADAMS. 1850. Jan. Feb. Mar. To Cash » do » do „ do „ Balance forward. 20 20 40 10 1216 1306 10 (13) SINGLE ENTRY. Bad Debts. 1850. Mar. 3 1 By Amount, loss — carried to Goods ajc. 7 19 Expenses. 1850. In this account is shown the manner of entering some of the particulars of the Trade Expenses, which may be done more or less minutely, ac- cording to circumstances. The sum-total of each month is the amount of the entries in the Cash-Book for Trade Expenses, the particulars being noted on a piece of paper and entered as on other side. Care must be taken to see that the amount of the particulars agrees with the simi- totaL Mar. 31 By Amount, loss — carried to Goods ajc. 93 3 9 however, be balanced off, as above, if the account for " Goods " (page 70) is adopted. PROFIT (OR, Profit and Loss). 1850. Mar. 31 By Capital at this date, (see Balance Sheet). „ Cash to J. Adams, January to March 1216 90 1306 10 10 Nett Profit, as above £294 10 Trade Expenses, as per Ledger 93 3 9 Bad Debts, do 7 19 Gross Profit .£395 3 7 JOHN ADAMS. 1850. Jan. Mar. Mar. 31 By Cash „ Interest, Jan. to Mar., brought from Profit a/c ... „ Profit By Balance.. This corresponds with the amount of Capital, as per Balance Sheet. 1000 12 294 1306 1216 10 10 10 10 70 LEDGER. BALANCE SHEET. (U) Br, John Adams. 1850. Mar. 31 To Accounts owing by J. A., as per Ledger... This is the sum-total: the particulars are entered in the "Account-Book." See page 72. „ Bills owing by J. A., as per Bill-Book Balance — Nett Capital 415 921 18 4 7 1337 1216 2 10 7 10 2553 13 5 {Bought.') Goods. 1850 31 28 31 To Purchases „ do. „ do. Credit.* Ca8h.t Total. Deduct Discount4 17 5 3 15 7 6 8 6 2 1518 893 598 13 3 11 Jan. Feb. Mar 1527 18 3 900 19 1 583 1 2 8 7 12 23 16 4 1535 18 3 908 11 1 606 17 6 7 4 3011 18 6 39 8 4 3051 6 10 40 18 11 3010 21 7 17 11 Deduct Discc „ Trade Ex] „ Bad Debts „ Profit (int mnt on unsettled a/cts. due by J. Adams See " Account-Book," p. 72. 3enses 10 2988 93 7 306 10 3 19 10 1 9 10 5 iludins- int erest) 3396 3 8 Direction lor Keeping tn IS account a re given at page J2. ~r * These are the monthly sums-total of the Invoice-Book. t These are the monthly sums-total of the entries for " Cash Purchases " in the Cash-Book : the particulars being noted on a piece of paper, and the amount then filled in here. % These are the monthly sums-total of the Discount columns on the Paid side of the Cash-Book, and are deducted from the amount of Goods, to show the nett sum. In making up a new account, say at December 31, the discount on unsettled accounts, now deducted on each side, must be allowed for, as follows : — If the discount on unsettjed accounts, on either side, at December 31 is greater than at present, say £45, 10s. Od. instead of £39, 18s. Id., the difference (14) SINGLE ENTRY. BALANCE SHEET. John Adams. 71 1850. Mar. 31 By Goods on hand, as per Stock-Book. „ Shop Furniture , „ Accounts owing to J. A., as per Ledger... This is the sum-total : the particulars are entered in the " Account-Book." See page 72. „ Bills owing to J. A., as per Bill-Book „ Cash in Bank „ Cash on hand, as per Cash-Book 12 12 393 102 495 758 613 663 22 2553 15 13 Goods. (Sold,) 1850 Jan. Feb. Mar By Sales „ do. „ do. Credit.* Cash.t Total. Deduct Discount.^ 1372 9 7 802 10 4 847 10 2 14 19 6 13 5 6 21 2 9 1387 9 1 815 15 10 868 12 11 15 6 3 12 8 9 7 4 9 3022 10 1 49 7 9 3071 17 10 34 19 9 Deduct Discount on unsettled a/cts. due to J. Adams See "Account-Book," p. 72, „ Goods on Hand „ do. do. on Commission The Goods on Commission require to be entered here, as they are included along with the Credit Purchases on the other 8ide. The Goods on hand require to be carried forward to the Dr. side, to begin a new account on April 1. 1372 803 861 3036 39 2997 393 5 3396 * These are the monthly sums-total of the Day-Book. f These are the monthly sums-total of the entries for ** Cash Sales " in the Cash- Book : the particulars heing noted on a piece of paper, and the amount then filled in here. X These are the monthly sums-total of the Discount columns on the Received side of the Cash-Book, and are deducted from tlie amount of Goods, to show tlie nett sum. only between the two sums — ^viz. £5, lis. lid. — not the sum itself, must be deducted from the " Goods " account. If, on the other hand, the dis- count is less at December 31, instead of deducting the discount, the dif- ference between the two sums must be added to the " Goods " account. 72 ACCOUNT-BOOK. Accounts owing by J. Adams, March 31, 1850. eTardine & Co Robertson & Simpson, Glasgow. Ainslie & Son, Liverpool T. Thomson, London G. Brooks, London A . Hunter, Manchester Deduct 5 % for Discount at settlement The Account-Book contains a list of all the Accounts owing to and by J. Adams, as ascertained from the various Accounts in the Ledger. 180 100 52 57 9 37 437 21 415 18 Accounts owing to J. Adams, March 31, 1850. James Brown, George Street... G. Innes, Liverpool R. Porteous, Bristol C. Chadwick, Manchester A. Paterson, London D. Palconer, Dublin J. Durham, Bristol J. Alison, Frederick Street R. Hume, Carlisle J. Cameron, Dundee C. Davidson, Charlotte Street. J. Milne, London , Deduct 5 7o for Discount at settlement When any of the Accounts are paid, the sums are entered in the outer money columns here left blank : it can thus be seen at a glance what accounts are settled. 15 19 111 67 11 165 15 29 241 1 119 798 39 758 I WAREHOUSE-BOOK. This book is used for keeping an account of the quantities of goods received into, or sent out from the warehouse. It is suitable chiefly in those cases where goods are bought and sold in considerable quan- tities at a time. By means of the Warehouse-Book, the quantity/ sold and on hand of any description of goods can be ascertained at once, on turning up the page where the account is kept. It is necessary to have an Index of the different accounts entered. The mode of keeping the book varies according to the nature of the business. In the following specimen is shown a method adapted to ordinary cases. The two accounts below are for the Sugar and Tea entered in the Invoice-Book as received from J. Ainslie & Son, and A. Jardine & Co., and which appear in the preceding Day-Book as sold to the various parties mentioned. The quantities are supposed to be entered on the Dr. side, as below, at the time of being received ; and on the Cr. side when they are sold. Sugar. 1850 Feb, Apr. 10 To Beceived from— J. Ainslie & Son, Liverpool.... To On hand.. 1850 Mar. By Sold to W. Edmonds ,, ,« J. Cameron „ On hand, forward Day-Bk page. Tea. 1850 Jan. 31 To Received from— A, Jardine & Co., Leith 1850 Feb. Mar. By Sold to T. Bladworth „ %j J.Milne Day-Bk page. 8 11 The Warehouse-Book to be written out next to the Stock-Book, page 54. DOUBLE ENTRY. Book-Keeping by Double Entry is so called because all the entries in the Day-Book, Invoice-Book, Cash-Book, and Bill-Book, are posted twice into the Ledger. The entries Sive Jirst posted, as in Single Entry, to the Dr. or Cr. of their respective accounts, and then a second time to the Dr. or Cr. of some other account. The entries first posted to the Dr. side of the Ledger, are posted the second time to the Cr. side; and those first posted to the Cr. side, are the second time posted to the Dr. side. The system pursued in Double Entry serves the following pur- poses to persons in business : — 1. To test the accuracy of the posting: the second posting being a check on the first, as will be seen at page 77. 2. To show the amount of goods bought and sold during the year, or for any other given time. 3. To show the profit or loss on the various departments of the business. 4. To keep distinct accounts, under their several heads, of the different branches of stock in trade, and other property. Double Entry is used chiefly by wholesale merchants and others whose transactions are on a large scale, and who dispose of goods in considerable quantities at a time. It is less suitable for retail trades, in which there are numerous small entries : it may, however, be used with advantage to a par- tial extent, by posting the Day-Book, Invoice-Book, and Cash-Book, in the manner described at page 22, under Single Entry. Journal. — It is usual to employ in Double Entry what is termed a " Journal ; " but this book, though useful or necessary in many cases, is not essential, and has been dispensed with in this system. 76 BOOK-KEEPING. POSTING THE DAY-BOOK. The Day-Book may be posted in two ways — I. The simplest method is the following, being the same as that employed in Single Entry : — First Posting. Post all the entries to the Dr. of the various persons. Second Posting. At the end of every month, add up the sum-totals that have been filled into the outer columns, and post the amount, being the total of goods sold, to the Cr. of an account to be opened in the Ledger under the head of " Goods," using the words, " By Credit Sales." This mode of Double Entry is suitable for those cases where the merchant wishes to know merely the total amount of goods sold, of whatever kind, and the profit on the whole, without requiring separate accounts of the different kinds of goods, and the profit on each. It is the method already described under Single Entry, p. 22. Example. January 1, 1850. 12 John Turner, 10 Charlotte Street. To 16 Yards Sup. Black Cloth.... 15/6 „ 14 „ „ Brown do 15/9 James Edwards, 20 Princes Street. To 2 Brown's Moral Philosophy. . 13/6 „ 2 Campbell's Poems 3/9 r-21th.— Walter Forbes, George Street. To 6 Pair Kid Gloves 3/6 „ 4 „ Cotton Socks 1/ „ 25 Yards Carpeting 2/11 --31sf.— Goods — Cr. By Credit Sales Sums-Total 23 30 14 17 11 Oil DOUBLE ENTRY. 77 At the first posting, these entries will appear in the Ledger at the Dr. of each person's account. John Turner, 10 Charlotte Street. 18-50. Jan. 1 To Goods.. 1 23 8 6 1850. James Edwards, 20 Princes Street. 1850. Jan. 5 To Goods.. 1 1 14 6 1850. Walter Forbes, George Street. 1850. Jan. 27 To Goods.. 3 4 17 11 1850. At the second posting, the sum -total of these entries will appear at the Cr, of the account opened under the head of " Goods." Goods. 1850, 1850. Jan. 31 By Credit sales 30 11 If the first and second posting be correct, on adding together the sums posted to the Dr, of the above accounts, they will be found equal in amount to the sum posted to the Cr. of the "Goods" account, it being the same sums that have in this way been posted to the two opposite sides of the Ledger. Hence, as formerly stated, the second posting is a check on the accuracy of the first. The amount of goods sold on credit during the month, is shown by this entry on the Cr. side of the account for " Goods." The amount of goods bought on credit is shown in the same way, by posting the monthly amount of the Invoice-Book to the Dr. side of the " Goods " account. The amount of goods bought and sold for cash, is shown by post- ing these items from the Cash-Book to the " Goods " account. 78 BOOK-KEEPING. POSTING THE DAY-BOOK. II. — The following is another mode of posting the Day-Book, and is that which is used in the present system : — In many wholesale concerns, it is necessary to keep separate accounts for the different kinds of goods sold, or at least for such as are sold in large quantities, as wine, sugar, coffee, &c. in order that the merchant may know how much is sold, and what is the profit on each article. For this purpose, in entering goods into the Day-Book of which separate accounts are to be kept, the sum-total of each entry is marked in the inner columns, immediately below the particulars ; and in entering goods, of which no special account is to be kept, but which are to be posted to a general account for " Goods," the sum-total of each entry is extended to the outer columns. This distinction having been carefully attended to, the posting is conducted as follows : — First Posting. Post all the entries to the Dr. of the various persons, the same as in Single Entry. Second Posting. 1. Post the entries for goods, of which separate accounts are to be kept (being those of which the sums-total are marked into the inner columns), to the Cr. of accounts to be opened under their respective heads, such as Paper, Tea, Sugar, Goods on commission, or whatever title the nature of the entry may require. 2. Add up at the end of every month the sums-total extended to the outer columns (being the goods of which no special account is to be kept), and post the amount to the Cr. of an account to be opened under the general title of " Goods." The pages of the Ledger to which the entries have been posted the first time, are marked on the margin opposite the name of each person; and the pages of the second posting, below the others oppo- site the goods of each entry. A mark / is made against those entries that have been ex- tended to the outer columns, in order to be posted monthly, to show that this has been done ; and the page in the Ledger to which the sum-total at the end of the month has been posted, is marked on the margin opposite the addition. As in the former case, if the posting is correct, the amounts posted to the Dr. sides, will be equal to those posted to the Cr. sides of the Ledger. \ DOUBLE ENTRY. 7^ Example. January 1, 1850. U James Arnold, London. To Paper—lOO Reams Demy 18/6 As a separate account is to be kept for " Paper," the sum is not extended to the outer columns. The entry is first posted to the JDr. of J. Arnold, and then to the Cr. of an account to be opened under the head of '* Paper," using the words, " By Amount sold to J. Arnold." John Turner, 10 Charlotte Street. To 1 6 Yards Superfine Black Cloth, 1 5/6 „ 14 „ „ Brown do. 15/9 As no separate account is to be kept for cloth, the sum-total is extended to the outer columns, a mark / being made on the margin to show that this has been done. The entry is first posted to the Dr. of J. Turner, and at the end of the month to the Cr. of the general account to be opened under the head of " Goods." Walter Forbes, George Street. To 6 Pair Kid Gloves 3/6 „ 4 „ Cotton Socks 1/ „ 25 Yards Carpeting 2/11 This is posted in the same way as the pre- vious entry, to the general account for *' Goods." Thomas Dundas, Manchester. To Tea— 454 lbs 4/9 As a separate account is to be kept for ** Tea," the sum is not extended to the outer columns. The entry is first posted to the Dr. of Thomas Dundas, and then to the Cr. of an account to be opened under the head of *' Tea "—using the words, " By Amount sold to T. Dundas." Carried over 92 10 12 11 23 17 11 107 16 28 80 BOOK-KEEPING. January 31, 1850. 4 y 12 18 18 12 Brought over. , Robert Ireland, London. To 10 Pieces Welsh Flannel, 206 yds. 2/1 „ 7 „ Twilled Cotton, 280 „ 7d. This is posted in the same way as the entry to John Turner. Alexander Gregory, Calcutta. To Paper—lOO Reams Demy 17/6 „ 100 „ Royal 21/6 Shipping Charges, &c. „ Insurance on £220 @ 45/, £4, 19s.— Policy and Duty 15/... „ Commission on £5, 14s This entry is first posted in one sum to the Br. of Alexander Gregory, -using the words, " To Goods (or To Sundries), £203, 9*. 9d5.," and then the separate sums for Paper, In- surance, Commission, to the Cr. of accounts to be opened under these several heads, as will be seen at page 82. Goods— O. By Credit Sales This is the sum-total of those entries that have been extended to the outer columns, in order to be posted at the end of the month to the general account for " Goods." 21 87 107 2 197 5 203 DOUBLE ENTRY. 81 At the first posting, these entries will appear in the Ledger at the Dr. of the following accounts : — James Arnold, London. 1850. Jan. 1 To Goods... 1 92 10 1850. John Turner, Charlotte Street. 1850. Jan. 5 To Goods.... I 23 8 6 1850. Walter Forbes, George Street. 1850. Jan. 27 To Goods... 3 4 17 11 1850. Thomas Dundas, Manchester. 1850. Jan. 28 To Goods... 3 107 16 6 1850. Robert Ireland, London. 1850. Jan. 31 To Goods... 3 29 12 6 1850. Alexander Gregory, Calcutta. 1850. Jan. 31 To Goods... or, " To Sundries." 3 203 9 9 1850. 82 BOOK-KEEPING. At the second posting, the entries will appear at the Cr. of the following accounts ; — GOODS (General Account). 1850. 1850. Jan. 31 By Credit Sales 1850. 1850. Jan. 1 31 By Amount sold to J. Arnold By Amount sold to A. Gregory These and the follow- ing entries may be more brieflyexpressed, " By J. Arnold," " By A. Gregory," and so on ; but the nature of the transactions is more clearly seen by entering *»— above. them 1850. 1850. Jan. 28 By Amount sold to T. Dundas INSURANCE. 1850, 1850. Jan. 31 By Amount charged to A. Gregory COMMISSION. 1850, 1850. Jan. 31 By Amount charged to A. Gregory DOUBLE ENTRY. 88 POSTING THE INVOICE-BOOK. The Invoice-Book may be posted by either of the methods described at pages 76 and 78. First Posting. All the entries are posted to the Cr. of the various accounts. Second Posting. All the entries are posted to the Dr. of the various accounts. Example. The following entries are posted according to the method described at page 78 ; separate accounts being kept for Paper, Coffee, Insurance, and Commission. January 1, 1850. 6^ U John Watson, Edinburgh. By Paper — 250 Reams Demy 14/ This is first posted to the Cr. of J. Watson, and then to the Dr. of " Paper," using the words, " To Amount Bought from J. Watson." Thomas Johnston, Leeds. By 25 Pieces Black Cloth, 525 yds. 14/6 „ 10 „ Doeskin 210 „ 3/6 —30^^.— James Eeid, London. By 8 Pieces Satinett. 220 yds. 3/2 „ 12 „ French Merino, 370 „ 4/10 These two entries, after being posted to the Cr. of T. Johnston, and James Reid, are at the end of the month, posted the second time to the i)r. of the general account for " Goods," using the words, •' To Credit Purchases." The sums are for this reason extended to the outer columns. Carried over 175 380 36 34 16 417 124 541 12 84 BOOK-KEEPING. January 31, 1850. 13 17 17 Brought over., William Graham, Kingston, Jamaica. cwt. qrs. lbs. By Coffee, 30 2 @ £5, 7s. 4d. „ Insurance „ Commission on £4, 5s. Od. . This entry is first posted in one sum to the Cr. of W. Graham, and then the separate sums for Coffee, Insurance^ and Commission, to the Dr. of accounts under these several heads. Goods — Dr. to Credit Purchases This is the sum-total of the entries which have been extended to the outer columns, in order to be posted at the end of the month to the general account for " Goods." 541 12 163 4 168 3 111 541 12 DOUBLE ENTRY. 85 POSTING THE CASH-BOOK. First Posting. All the entries on the Received side are posted to the Cr. of the persons from whom, or the transactions on account of which, the cash has been received, the same as in Single Entry. All the entries on the Paid side are posted to the Dr. of the persons to whom, or the transactions on account of which, the cash has been paid. The entries on the Received side for " Cash Sales " and " Bills Receivable," and on the Paid side for " Cash Purchases," " Bills Payable," and " Trade Expenses," are not posted singly : to save room in the Ledger, the sums-total only of these items are posted at the end of each month, to their respective accounts, as shown at pages 86 to 89. Second Posting. The sum- total of the Cash on the Received side is posted every month to the Dr. of an account to be opened under the head of " Cash," using the words, " To Amount Received from Sundries," or more briefly, " To Sundries." The sum-total of the Cash on the Paid side is posted every month to the Cr. of the account for " Cash," using the words, "By Amount Paid to Sundries," or more briefly, " By Sundries." The sum-total of the Discount on the Received side is posted every month to the Dr., and on the Paid side to the Cr., of an account to be opened under the head of "Discount," using the words, "To Amount allowed to Sundries," and *' By Amount allowed by Sundries," or more briefly, " To " and " By Sundries." 86 BOOK-KEEPING. POSTING Cash Received, 1850 Jan 15 1 15 " J 3 1 » J 10 J 16 J. Hamilton — Cash at commencement Robert Boyd, do. do These sums, heing the capital with which the partners commenced business, are posted to the Cr. of James Hamilton, and Robert Boyd. Goods— Cash Sales The various entries for " Cash Sales," besides being entered as usual in the Cash columns, are also filled into the column for Cash Sales (a mark ^J being made on the margin to show that this has been done), and posted in one sum at the end of the month. See page 88. James Arnold, London Cash Sales. BUls Receivable. 5 10 ') The Cash and Discount are posted to the Cr. of J. Arnold. Goods — Cash Sales Bills Receivable, No. 1, discounted.... The various entries for " Bills Receivable," including Cash and Discount, besides being entered as usual in the Cash and Discount columns, are also filled into the column for Bills Receivable (a mark / being made on the margin to show that this has been done), and posted in one sum at the end of the month. See page 88. Goods— Cash Sales 7 15 50 3 10 6 Carried over 16 15 6 50 Oj 18 U 4417 11 6 2000 2000 DOUBLE ENTRY. THE CASH-BOOK. 87 Cash Paid. 1850 Jan 1 5 14 J J 15 Cash Purchases Union Bank Posted to the Dr. of the Bank. Goods— Cash Purchases The various entries for " Cash Purchases," besides being entered as usual in the Cash columns, are also filled into the column for Cash Purchases (a mark J being made on the margin to show that this has been done), and posted in one sum at the end of the month. See page 89, Counting-House Furniture. Entries of this nature are posted to the Dr. of an account to be opened under the head of "Count- ing-House Furniture," using the words, " To Cash." Sugar— Duty £7 Freight, &c. 3 2 6 10 15 These payments are posted to the Dr. of " Sugar," using the words, " To Cash." Goods— Cash Purchases Trade Expenses— Salaries.., The various entries for " Trade Expenses," besides being entered as usual in the Cash columns, are also filled into the column for Trade Expenses (a mai'k ^ being made on the margin to show that this has been done), and posted in one sum at the end of the month. See page 89. Bills Payable, No. 1 The various entries for " Bills Payable," besides being entered as usual in the Cash columns, are also filled into the column for Bills Payable (a mark J being made on the margin to show that this has been done), and posted in one sum at the end of the month. See page 89. J. Watson, Edinburgh.. Bills Payable, No. 2 Trade Expenses — Rent & Taxes James Hamilton Posted to the Dr. of J. Hamilton. 3 7 6 BUls Payable. Trade Expenses. 50 Carried over 14 2 6150 035 25 17 6 4546 1 30 3700 125 100 491 88 BOOK-KEEPING. POSTING Cash Received. J 9 lO 1850 Jan 28 31 12 12 Brought over Bills Receivable, No. 2, discounted... Union Bank Posted to the Cr. of the Bank. Goods— Cash Sales This is the sum-total for the month, and is posted to the Cr. of an account to be opened under the head of " Goods," using the words, " By Cash Sales." Bills Receivable This is the sum-total for the month, includ- ing the Cash and Discount, and is posted to the Cr. of the account for " Bills Receiv- able" (see page 90), using the words, " By Cash and Discoimt." 16 15 6 50 57 16 6 107 16 6 Second Posting. Discount, Br. To Amount allowed to Sundries.. Cash, Dr. To Amount received from Sundries.. The entries to the Bank are commonly posted in one sum at the end of the month, the same as " Cash Sales," &c. by using addi- tional columns. 44171 57 100 i 4575 DOUBLK ENTRY. THE CASH-BOOK. Cash Paid. 1850 Jan 31 Cash Purchases Brought over Robert Boyd Posted to the Dr. of R. Boyd. Goods— Cash Purchases This is the sum-total for the month, and is posted to the Dr. of " Goods," using the words, " To Cash Purchases." Bills Payable This is the sum-total for the month, and is posted to the Dr. of the account for " BUls Payable" (see page 90), using the words, " To Cash." Trade Expenses This is the sum-total for the month, and is posted to the Dr. of an account to be opened under the head of " Trade Expenses," using the words, "To Cash — Salaries," &c. Cash on Hand 14 2 6 14 2 6 BiUs Payable. Trade Expenses. 35 150 35 Second Posting. Discount, Cr. By Amount allowed by Sundries Cash, Cr. By Amount paid to Sundries Viz. sum-totaJ above £4575 Deduct Cash on hand 8 19 £4566 1 The Cash on hand requires to be deducted, as above, from the summation of the cash columns. 2517 6 4546 20 4566 90 BOOK-KEEPING. POSTING THE BILL-BOOK. First Posting. Bills Receivable are posted to the O. of the person from whom they have been received, the same as in Single Entry. Bills Payable to the Dr, of the persons to whom they have been granted. Second Posting. Bills Receivable. — Add at the end of every month the amount of bills received, and post the sum -total to the Dr. of an account to be opened under the head of " Bills Receivable," using the words, " To Amount received from Sundries," or more briefly, " To Sundries." Bills Payable. — Add at the end of every month the amount of bills granted, and post the sum -total to the Cr. of an account to be opened under the head of " Bills Payable," using the words, " By Amount granted to Sundries," or more briefly, " By Sundries." Example. Bills Receivable, No. When Reed. From whom Received. Amount. Date. Term. When Due. Entered in Cash-Bk. 2 2 3 1 2 3 4 1850. Jan. 10 \\ 21 „ 31 T. Dundas, Manchester do. do R. Hall Leeds 50 57 212 100 16 7 4 6 11 5 1850. Jan. 8 ',' 20 „28 1 mo. 2 mo. 4 mo. 3 mo. 1850. Feb. 11 May 23 M 1 1850. Jan. 11 „ 31 Feb. 2 3 W. Forbes, George Street Bills Receivable— To Amount received from Sundries Mar. 10 9 420 Bills Payable. No. ^1 To whom Granted. Amount. Date. Term. When Due. Entered in Cash-Bk. B 1 2 3 4 1850. Jan. 10 „ 20 '/, ^'^ „ 31 J. Watson, Edinburgh 300 100 641 572 1613 8 3 11 6 6 1850. Ja.l0 „ 20 „ 20 „ 25 10 days 10 „ 1 mo. 2 mo. 1850. Jan. 23 Feb. 2 „ 23 Mar. 28 1850. Jan. 23 6 6 T. Johnston, Leeds Feb. 2 „ 23 7 9 Mortimer & Son, Manchester Bills Payable— B]/ Amoutit granted to Sundries ,, 28 DOUBLE ENTRY. 91 BALANCING THE LEDGER. The Ledger is balanced, as in Single Entry, at the end of the year, or at any other time, when a view of your affairs is re- quired. Note.— After the books have been all posted, or at any stated convenient time, and previous to balancing the Ledger, each entiy should be compared with that in the book from which it was taken, to ascertain that it has been posted correctly. The various personal accounts — that is, those for individuals — are balanced in the same way as in Single Entry (see page 17); all the Dr. balances being carried forward to the Dr., and all the Cr. balances to the Cr. of the next accounts. The accounts for Trade Expenses and Bad Debts, and those pe- culiar to Double Entry, used for showing the profit or the loss on the various transactions — such as for " Goods," " Tea," *' Paper," *' Commission," &c. are balanced by carrying the balances to the Dr. or Cr. of the Profit and Loss Account, as shown under their several accounts in the following Ledger, pages 138 to 145. The accounts for Bills and Cash, also peculiar to Double Entry, are balanced in the way shown at pages 137 and 143. After the accounts have been balanced, the operation should be carefully revised, to ascertain that it has been performed cor- rectly. Trial Balance. — As a check on the accuracy of the posting and the balancing, and preparatory to a final balance, all the accounts on the Dr. side of the Ledger are added together in one amount, and all those on the Cr. side in another. If the entries are posted and the accounts balanced correctly, the two sums will be equal. This statement is termed a " Trial Balance." If the two sums do not agree, some error has been committed, which must be found out and rectified. The Trial Balance is made before balancing the accounts — for Bad Debts ; Trade Expenses ; those peculiar to Double Entry, used for ascertaining the profit or loss ; the ac- count for Profit and Loss ; and the Private Account. See the Trial Balance of the following set of books, page 146. 92 BOOK-KEEPING. TAKING STOCK. An inventory of goods or Stock on hand, as mentioned under Single Entry, should be taken at least once a year, with the view of ascertaining the state of your affairs. The goods are valued either at cost price, or at a per-centage below it, to allow for bad stock or depreciation in value, accord- ing to the nature of the case. The inventory is written out in the " Stock-Book." When the Balance Sheet is to be drawn out, the amounts of the various kinds of goods on hand are entered from the "Stock- Book," either to the general account opened in the Ledger for " Goods," or to the special accounts for " Sugar," " Coffee," "Paper," &c. From thence the respective amounts are copied into the Balance Sheet. See the following Ledger, pages 138 to 141. Stock of a more permanent nature — such as machinery, build- ings, shop-furniture, &c. — does not require to be entered in the Stock-Book, as its value is ascertained from the accounts opened in the Ledger under their respective heads, and is from thence entered into the Balance Sheet. In accounts for machinery, furni- ture, &c. a yearly deduction of 5 or 10 per cent, requires to be made from the original cost, to allow for deterioration, or tear and wear. Goods " on commission " are not entered along with the other goods, but in a separate list, as they belong to the parties who have sent them on sale. The amount on hand requires to be entered in the Ledger, to the Dr. of the persons from whom they were got, in order to ascertain the balance due to them ; and also to the (7/-. of the account for Goods on Commission. See Ledger, pages 133 and 138. DOUBLE ENTRY. PROFIT AND LOSS. The Profit, or the Loss, on the various transactions for the year, br any other given time, is ascertained from an account to be ^opened under the head of " Profit and Loss." This account is formed by entering — On the Dr, side — The "Losses" — as Bad Debts, Trade Expenses, &c. On the Cr. side — The "Profits" — as profit on Goods, Sugar, Paper, Com- mission, &c. These profits, or losses, are ascertained from the accounts under their respective heads in the Ledger, from which they are trans- ferred. The accounts are balanced off when the transfer is^made. The Profit and Loss account is balanced off by carrying the Profit, if any, to the Cr. (or the Loss to the Dr.) of the Private Account. See Profit and Loss Account, page 146. It will be useful, as a check on the accuracy of this account, also to ascertain the Profit by the method described at page 20. BALANCE SHEET. The Balance Sheet is drawn out at the end of the year, or at any other time when you wish to ascertain the state of your affairs. It is drawn out in the same way, and embraces the same parti- culars, as in Single Entry (see pag^ 19). On the Dr. side are entered — Your liabilities^ or the sums you are owing. On the Or. side are entered — Your assets — that is, the sums owing to you, and your pro- perty of every description. The difference between the two sides shows the nett amount of your property or capital. All the particulars in the Balance Sheet, are taken from the accounts under their respective heads, in the Ledger. The Balance Sheet of Hamilton and Boyd, to whom the follow- ing books are supposed to belong, will be seen at page 148. 94 BOOK-KEEPING. PRIVATE ACCOUNT. This account is kept and balanced in the same manner as in Single Entry. On the D7\ side are entered — The various sums you draw from the business on your own personal account. On the Cr, side are entered — The sum or capital you embarked in the business at the com- mencement, and any sums you may pay into the business afterwards. Interest 5 per cent, on your capital. The Profit (if any) gained during the year or other given period. The Interest and the Profit are brought from the ** Profit and Loss" account at the end of the year, or at any other time, when j'ou balance your affairs. The " Profit and Loss " account is balanced off when the transfer is made. If, instead of a profit, there has been a loss during the year, tlie loss is carried to the Dr. of your account. The Private Accounts of James Hamilton and Robert Boyd will be seen at page 148. DOUBLE ENTRY. THE BOOKS OF HAMILTON AND BOYD, LONDON. Page 97 DAY-BOOK, - - - - INVOICE-BOOK, - - . 109 CASH-BOOK, - - - - 114 BILL-BOOK, - - - - 120 WAEEHOUSE-BOOK, - - 124 STOCK-BOOK, - - - - 125 LEDGEK, 126 ACCOUNT-BOOK, - - - 150 96 BOOK-KEEPING. DIRECTIONS. In writing the following course, the pupil should proceed as far as possible with the various books simultaneously, as explained at page 24. Great care should be taken to enter correctly the original sums in the Day-Book, &c., as errors made at first are of course per- petuated in the Ledger, and are not easily detected. After the entries for a month or other stated period have been posted, they should be compared with the corresponding entries in the Ledger, to ascertain that the posting is correct. (See page 24.) The mode of rectifying some of the errors apt to occur in posting, will be seen in the accounts of J. Arnold, and J. Edwards, page 128, and T. Dundas, page 129. The Day-Book and Invoice-Book are posted according to the method described at pages 78 and 83. Separate accounts are sup- posed to be kept by Hamilton and Boyd for Goods on Commission, Paper, Port Wine, Sugar, Tea, Coffee, Insurance, Interest, Com- mission ; all such entries must, therefore, at the second posting, be posted individually to their several accounts. They have the post- 2 ing marked thus - The entries for all other goods are posted in one sum at the end of the month to the general account for " Goods." They have the posting marked thus ^J Note.— If Hamilton and Boyd wished to know merely the amoimt of goods bought and sold without any separate accounts, the sums-total of all the entries would he extended to the outer columns, and the amounts of the whole posted monthly to the " Goods" account. Two books of a foolscap size should be employed for the follow- ing set : — I. The first, consisting of about 32 pages, or 8 sheets, to contain — Bill-Book 4 pages. Warehouse-Book.. 1 „ Stock-Book 1 „ The Day-Book 13 pages. Invoice-Book... 7 „ Cash-Book 6 „ Each page to be ruled across with about 36 lines, exclusive of the head-line. II. The second, consisting of about 24 pages, or 6 sheets, to contain — The Ledger 23 pages. | Account-Book 1 page. The first 8 pages of the Ledger should be ruled with Dr. and Cr, columns, as in the printed pages, and with 36 lines across. The remaining pages, for the sake of more space, should have the Dr. and Cr. sides of the accounts placed on the two opposite pages. If the first 8 pages are made the same as these last, 8 additional pages will be required, or 8 sheets altogether. DOUBLE ENTRY. 97 THE DAY-BOOK.* London^ January 1, 1850. lO lO James Arnold, London. To Paper, 1 00 Rms. Printing Demy . 18/6 „ „ 75 „ do. Royal. 23/ „ „ 100 „ do. do. . 22/6 „ „ 50 „ do. do. . 23/6 „ „ 20 „ Small Post 19/6 For the mode of posting the Day-Book, see pages 78, 79, and 80. —2d.-- John Turner, 10 Charlotte Street. To 16 Yds. Superfine Black Cloth, 15/6 „ 14 „ „ Brown do. 15/9 „ 8 „ Doeskin 3/6 „ 4 „ do 4/0 — 3d— James Pringle, Dublin. ToPort Wine— 2 Pipes £75 », >> „ 1 do James Edwards, 20 Princes Street. To Goods on Commission — 2 Brown's Moral Philosophy, 1 v. 1 3/6 4 Corastock's Natural Philosophy.. 3/6 3 Cowper's Poems, 2 vols.l2mo. 6/9 2 Campbell's Poems, 18mo 3/9 Carried over » For another form of the Day-Book, see page 100. 92 86 112 58 19 369 10 150 72 222 16 25 12 25 12 6 DAY-BOOK. January 8, 1850. (2) Brought over 25 12 6 2^ Thomas Dundas, Manchester. U To Tea— {from W. Black, Canton.) 7 Chests Hyson — W. B. 1 gross 84 lbs. tare 19 lbs. E-g 2 82 17 %% 3 85 18 lit 4 83 21 III 5 80 19 S«^ 6 84 17 % Hi 7 86 19 .584 130 deduct tare, 130 454 lbs 4/9 107 16 6 — lO^A.— 2 Francis Milner, Dundee. y To 10 Pieces Black Cloth, 206 yds. 18/6 190 11 „ 2 „ Doeskin, 42 „ 3/10 8 1 „ 1 „ Welsh Flannel, 23 „ 1/11 2 4 1 200 16 1 — 12^ 8 7 2 J John Addison, Glasgow. To 25 Yards Carpeting 2/11 „ 30 „ do 3/2 » 26 „ do 3/9 3 4 4 12 15 17 11 6 13 5 5 3 y Walter Forbes, George Street. To 6 Pair Kid Gloves 3/6 „ 4 „ Cotton Socks 1/2 1 1 4 8 1 5 8 3 U —20^^.— Eichard Hall, Leeds, (@ 72 days). To Sugar — (from J. Cameron, Demerara.) 6 Hogsheads — cwt. qrs. lbs. cwt. qrs. lbs. gross 14 2 1 tarel 2 16 1 7 113 t 15 3 8 1 1 10 ^ 17 1 4 12 4 ^ 18 6 1 18 16 3 1 1 1 15 98 2 27 7 2 24 deduct tare 7 2 24 212 7 11 91 3 @£2,6s.8d. It is usual in selling goods on consignment, to mark, as above, the time at which they are to be paid. The sugar is supposed to be payable by R. Hall in 72 days; and all the entries for Sugar sold have been marked in this way. See also the " Account - Sales " of Sugar, page 155. Carried over 240 19 8 100 DAY-BOOK. January 25, 1850. (4) 10 Brought over.. G. Campbell, Liverpool. To Coffee, 6 Tierces— cwt. qrs. lbs. qrs. lbs. gross 5 2 1 tare 2 12 CO 5 3 2 2 9 o 5 6 2 17 2 5 18 2 10 6 6 14 2 12 2 3 3 2 7 i 6 14 34 deduct tare 3 7 2 7 30 2 @ £8, 3s. 4d. —30^^.— George Smith, Bristol. To Tea— (from W. Black, Canton.) 10 Chests Congou — gross 1152 lbs. w ^ tare 287 ^2 . "* nett 865 lbs. @ 3/2 — 3l5^.— Goods — Cr, By Credit Sales.. 249 136 19 240 240 19 19 i \ Note.— The following is the most convenient form of the Day-Book, when the breadth of the page will admit of its use. The word *' To" at each entry may be left out : — January 3, 1850. James Pringle, Dublin. Port Wine-2 Pipes £75 „ „ 1 do —nth.— Walter Forbes, George Street. 6 Pair Kid Gloves 3/6 4 „ Cotton Socks 1/2 150 72 222 1 1 4 8 1 5 (5) DOUBLE ENTRY. February 1, 1850. 101 Robert Ireland, London. To 10 Pieces Welsh Flannel, 206 yds. 2/1 „ 8 „ Irish Linen, 240 „ 2/9 „ 6 „ Linen Sheeting 300 „ 2/7 „ 7 „ Twilled Cotton, 280 „ 7d. „ 2 „ Mous. de laine, 59 „ 1/1 „ 3 „ German Lawn, 38 „ 2/8 — ith— John Addison, Glasgow. To 150 Pair Blankets 17/6 „ 60 „ do 19/ „ 20 Pieces Black Silk, 396 yds. 4/6 „ 6 „ Brown Cloth, 124 „ 15/ „ 4 „ Doeskin, 86 „ 3/10 Archibald Logan, Newcastle. To Port Wine, 1 pipe „ do. do. 2 „ £73 „ do. do. 1 „ — 9^A.— George Smith, Bristol. To 3 Chests Oranges 45/ „ 2 Boxes Lemons 87/ „ 3 Casks Butter, 200 lbs 9jd. cwts. qrs. lbs. „ 3 „ Cocoa, gross 17 12 tare 2 26 nett 16 2 4@63/ —14^^.— Walter Forbes, George Street. To 6 Pieces Black Satinett, 170 yds. 2/7 „ 2 „ Silk Velvet, 63 „ 12/ „ 4 „ French Cambric, 118 „ 9/6 Carried over 21 9 2 33 38 15 8 3 4 3 3 11 5 1 4 109 12 131 5 57 89 2 93 16 9 8 386 16 76 146 75 297 6 15 8 14 7 18 4 52 1 9 75 9 21 19 2 37 16 56 1 115 16 687 14 102 DAY-BOOK. February 18, 1850. (6) 2^ lO 13 13 2^ lO Brought over Alexander Gregory, Calcutta. To Paper— 120 Eeams Demy 17/10 „ „ 84 „ Royal 22/ „ 50 „ do 22/3 Shipping expenses, &c „ Insurance on £280 @ 50/, £7— Policy and duty, 14/9 „ Commission 30 Bales, A.G., 1 to 30, Shipped per The Amelia. James Arnold, London. To Goods on Commission — 6 Campbell's Poems, 18mo 3/6 4 Gibbon's Rome, 5 vols. 8vo.... 45/ 6 Russell's Modern Europe, 4 v. 38/ 2 Shakspeare, 2 vols. roy. 8vo... 26/ 1 Byron's Poems, royal 8vo 12/ 2 U —19^^.— Francis Milner, Dundee. To Coffee, 6 Tierces— cwt. qrs. lbs. gross 33 1 2 6 vritten out, ^ith additional columns, in the same form as page 115. 10 6 9 6 16 10 118 CASH-BOOK. (•5) Cash Received. 1850 Mar. 1 11 15 20 22 23 30 31 Cash on hand Bills Receivable, No. 8, discounted... Goods — Cash Sales Thomas Thomson, Aberdeen Union Bank Goods — Cash Sales Bills Receivable, No. 10, discounted.. T. Dundas, Manchester Goods — Cash Sales Union Bank James Pringle, Dublin Goods — Cash Sales Bills Receivable, No. 11, discounted.. Goods — Cash Sales J. Addison, Glasgow — Composition of 10/ a £ Union Bank George Knight, Birmingham Goods — Cash Sales A. Gregory, Calcutta — Drawback on Paper Goods — Cash Sales.. Bills Receivable 23 316 Second Posting. Discount — ■ To Amount allowed to Sundries Cash— To Amount received from Sundries.... Viz. sum-total above, £1659 8 11 Deduct Cash on Hand, March 1, 36 5 9 18 Cash. 36 75 4 1 375 4 119 84 4 75 47 1 119 2 93 230 298 4 63 1659 1623 16 4 7 9 10 111 £1623 3 2 This page to be \rritten out, with additional columns, in the same form as page 114, (6) DOUBLE ENTRY. 119 Cash Paid. 1850 Mar. 1 Union Bank Trade Expenses — Salaries James Reid, London Bills Payable, No. 5 Eobert Boyd James Hamilton Trade Expenses — Rent „ „ Salaries Goods — Cash Purchases Bills Payable, No. 8 Trade Expenses — Salaries „ „ Rope and twine Union Bank do. do Robertson & Co. Glasgow Goods — Cash Purchases J. Wilson, London Trade Expenses — Salaries » Freight Union Bank Robert Boyd Goods — Cash Purchases 16 Bills Payable 350 Trade Expenses || 114 Cash on Hand Second Posting. Discount — By Amount allowed hy Sundries.. Cash — By Amount paid to Sundries Viz. sum-total above, £1659 8 11 Deduct Cash on Hand, 51 12 Discount. 12 10 13 Cash. 100 5 142 250 40 35 85 7 5 100 7 150 100 201 10 27 7 316 15 51 1659 1607 16 10 12 17 11 14 4 17 10 5 12 16 1 £1607 16 11 Tlais page to be MTitten out, yvitb additional columns, in the same form as page 115. 120 BILL-BOOK. (1) Bills No. "When received From whom Eeceived. Amount. Date. Term. When Due. Entered in Cash-Bk. 1850. 1850. 1850. 1850. 2 1 Jan 10 T. Dundas, Manchester. 50 Jan. 8 1 mo. Feb. 11 Jan. 11 2 2 >> >> do. do. 57 16 6 >» » 2 „ Mar. 11 „ 31 3 3 » 31 R. Hall, Leeds. 212 7 11 „ 29 2 „ AprH 1 Feb. 2 9 Bills Receivable— To Amount received from 4 Feb 14 Sundries 320 115 4 16 5 2 Feb.l4 3 „ May 17 3 "W. Forbes, George Street Feb. 17 3 5 }) J, G. Smith, Bristol. 136 19 2 It jj 1 » Mar. 17 „ 25 4 6 » 20 A. Logan, Newcastle. 297 „ 18 3 ,, May 21 2 7 » 26 F. Milner, Dundee. 243 2 1 „ 20 1 „ Mar. 23 „ 28 9 5> 28 Bills Receivable— To Amount received from Sundries 792 76 17 5 4 8 Mar . 2 T. Simpson, Belfast. Mar.l 1 » April 4 Mar. 1 5 9 }) 7 W. Jerdan, Queen Street 106 7 2 » 7 4 ,, July 10 1 10 » 20 J. Arnold, London. 120 „ 19 1 » April 22 „ 5 1 11 » )) do. do. 120 a it 2 ,, May 22 „ 20 1 12 >) do. do. 140 13 j> »» 3 „ June 22 3 13 jj G. Campbell, Liverpool. 182 2 » 17 2 ,, May 20 3 14 »> „ do. do. 200 8 6 » M 3 „ June 20 t^^'Ti 9 » 31 Bills Receivable — To Amount received from ! §2 SundHes, 945 8 10 u "S 8) ■' i li a .s ^% 1 i If Hi 111 For the mode of posting s i C3 V :-ii the Bill-Book, see page 90. .2 a 6 d a a HI (2) DOUBLE ENTRY. 121 Heceivable. By whom Drawn. On whom Drawn. To whom Payable. Where Payable. P4 Hamilton & Boyd. T. Dundas. T. Dundas. A. Brovra. Hamilton & Boyd. T. Dundas. Manchester. Leeds. These columns are used in business for entering the particulars shown in the above examples : it is unnecessary here, however, to fill up the other blanks. These columns are used for ascertaining readily the dates when the bills are (due. 122 BILL-BOOK. (3) Bilk When When Due. Entered No. Granted To whom Granted.* Amount. Date. Term. in • Cash-Bk. 1850. 1850. 1850. 1850. 5 1 Jan. 10 J. Watson, Edinburgh. 300 Jan.lO 10 da. Jan. 23 Jan. 23 6 2 „ 20 T. Johnston, Leeds. 100 „ 20 10 „ Feb. 2 Feb. 2 6 3 j> »> do, do. 641 8 »> >> 1 mo. „ 23 „ 23 7 4 „ 25 Mortimer & Son,Manchester 572 3 6 „ 25 1 „ „ 28 „ 28 9 „ 31 Bills Payable— £y Amount granted to 5 Feb. 1 Sundries 1613 250 11 6 Feb. 1 1 „ Mar. 4 6 T. Johnston, Leeds. Mar. 4 6 6 j> » do. do. 300 >» J) 2 ,, April 4 1 7 7 » 2 A. Robertson, Glasgow. 234 14 8 » 2 2 ,, » 5 7 8 » 8 Mortimer & Son,Manchester 100 » 8 1 » Mar. 11 » ^ 7 9 „ 20 J. Reid, London. 124 14 6 „ 20 3 ,, May 23 9 „ 28 Bills Payable— By Amount granted to Sundries 1009 200 9 2 6 10 Mar. 3 W. Graham, Kingston.-t Mar. 3 60-S-s "i 6 11 » >» do. do. + 200 >j » 8 12 „ 10 J. Anderson, Glasgow. 73 6 7 „ 10 1 mo. April 13 9 „ 31 Bills Payable— By Amount granted to <^ •Or, Sundries 473 6 7 11 * Or, accepted By whom Drawn. + These two bills are sup- posed to be drawn by Ha- milton and Boyd upon a person in Kingston who is owing them money, and to be payable to W. Graham at 30 and 60 days' sight- that is, 30 and 60 days If fl 1 i 2 5 after having been sighted 1 i or seen by the person «« a who is to pay them to W. •=| Graham. g o (4) DOUBLE ENTRY. 123 Payable, To wliom Payable. Where Payable. cfi O ^ J. "Watson. K. Russell. IJnion Bank, Edinburgh. Bank of England. 23 These columns are used in business for entering tbe particulars shown in the above examples : it is unnecessary here, however, to fill up the other blanks. 23 13 These columns are used for ascertaining readily the dates when the bills are due. y y. OF THR WAREHOUSE-BOOK. This book is used for keeping an account of the quantities of goods received into, or sent out from the warehouse. It is suitable chiefly in those cases where goods are bought and sold in consider- able quantities at a time. By means of the Warehouse-Book, the quantity sold„and on hand of any description of goods can be ascertained at once, on turning up the page where the account is kept. It is necessary to have an Index of the different accounts entered. The mode of keeping the book varies according to the nature of the business. In the following specimen is shown a method adapted to ordinary cases. The two accounts entered below are for the Sugar and Tea re- ceived on Commission from James Cameron and William Black, and which appear in the preceding Day -Book as sold to the various parties mentioned. The quantities are supposed to be entered on the Dr. side, as below, at the time of being received ; and on the Or. side when they are sold. Sugar. 1850 Jan, To Received from — J, Cameron, Demerara, per " The Jane " . . . . Hhds. 1850 Jan. Mar. 20 4 26 29 50 50 By Sold toR. Hall... „ „ G.Knight „ „ do. „ „ J. Pringle Day-Bk page. 3 8 10 11 6 16 20 50 Tea. 1850 6 1 To Received from — WilUam Black, Canton, per "The Mary".... „ On Hand Chests. 1850 Jan. Mar 8 30 6 9 31 BySoldtoT.Dundas „ „ G.Smith. „ „ T.Dundas J, „ G.Campbell „ On hand, forward Day-Bk page. Chest Jan. 40 2 4 8 9 7 10 6 9 8 40 40 Apr. 8 DOUBLE ENTRY. STOCK-BOOK. 125 Goods on Hand^ March 31, 1850. 10 Pieces Superfine Black Cloth, 200 yards 14/6 6 „ Printed Cotton, 180 „ 7d. 3 „ Prench Merino, 92 „ 4/10 2 „ Crimson Velvet, 60 „ 12/6 12 „ Irish Linen, 362 „ 1/6 Sundries (in actual business all the particulars are given.) This sum is entered in the Ledger under ** Goods." Coffee— 6 Tierces, 32 cwt. 2 qrs. @ £7, 4s. 8d. This is entered in the Ledger under ** CoflFee." Wine— 2 Pipes @ £68 This is entered in the Ledger under ** Wine." The Coffee and Wine are entered by themselves, be- cause separate accounts are kept for them in the Ledger. 145 5 22 37 27 1595 5 4 10 3 5 8 10 1832 8 6 235 1 8 136 Books on Commission from J. Wilson, London — on Hand, March 31, 1850. 2 Brown's Moral Philosophy, 8vo 12/ 3 Campbell's Poems, 18mo 3/4 2 Kussell's Modern Europe, 4 vols. 8vo 30/6 Sundries These goods are entered to the Dr. of J. Wilson's account in the Ledger, to show the balance due to him ; but are not included in the Inventory of Hamilton and Boyd's own goods, as they belong not to them but to J. Wilson. The chests of Tea on hand (see Warehouse -Book) are not included in the Inventory, as they belong to the parties who sent them on sale. 1 3 85 89 19 L E D G E E. INDEX. Arnold, James London 1 Addison, John Glasgow 2 Anderson, John Glasgow 8 Black, William Canton 8 Bills Receivable 9 Bills Payable 9 Bad Debts 13 Balance Sheet 15 Boyd^ Robert 15 Campbell, George.... Liverpool.... 3 Cunningham, R Leeds 8 Cameron, James Demerara ... 8 Coffee 11 Counting-House Furniture 12 Cash 12 Commission 13 Dundas, Thomas Manchester. 2 Discount 12 Edwards, James Princes St... 1 Forbes, Walter George St . . . 3 Gregory, Alex Calcutta 2 Graham, William. ...Kingston 6 Goods (general account) 10 Goods on Commission 10 Hall, Richard Leeds 3 Hamilton^ James 15 Ireland, Robert London 4 Irving, J. & Co Oporto 6 Interest 12 Insurance 13 Jerdan, William Queen St 5 Johnston, Thomas... Leeds 6 Knight, George Birmingham 5 Logan Archd Newcastle.... 4 DOUBLE ENTRY. 127 Milner, Francis Dundee 2 Mortimer, D., & Son.. Manchester. 7 Marine Insurance Company 7 Pringle, James Dublin 1, 4 Paper 10 Port Wine 11 Profit and Loss 14 Reid, James London 7 Robertson, A., & Co.. Glasgow 7 Smith, George Bristol 3 Simpson, Thomas.... Belfast 4 Sugar 11 Turner, John Charlotte St. 1 Thomson, W Aberdeen.... 5 Tea 11 Trade Expenses ...13 Trial Balance 14 Union Bank. Watson , John Edinburgh . . 5 Wilson, John London 6 128 LEDGER. James Arnold, London. 1850. Jan. 1 Feb. 18 Mar. 4 18 To Goods do do.* do do.f Mar. 4, under posted 1850. 1 369 10 Jan. 3 6 24 13 „ 8 10 18 Mar. 20 10 335 2 10 750 3 By Cash Discount. 3 Bills*.., • The dates are left out for w-ant of space. • Posted incorrectly, to show the naode of rectifying the error. t The error of March 4 is rectified by making this entiy, as soon as the mistake is discovered. John Turner, 10 Charlotte Street. 1850. Jan. Mar. Mar. 31 To Goods do. do. To Balance. § 25 252 53 331 305 1850. Jan. Mar. By Cash „ Discount „ Balance*. Balance forward. James Pringle, Dublin. 1850. Jan. Mar. To Goods „ do. „ do. to page 4 Carried to pape 4, as this space is filled up. 222 495 50 767 10 10 1850. Jan. Feb. By Cash „ Discount „ Cash „ Discount. to page 4 1 210 18 ,, 11 2 3 470 9 » 24 15 717 4 James Edwards, 20 Princes Street. 1850. Jan. To Goods. This is posted £10 too much : the error is rectified by mak- ing an entry on the other side of the account, as soon as the mistake is dis- covered. 1850. 1 13 8 9 Jan. 9 13 8 9 By Cash „ Discount. ), Goods, Jan. 5, overposted. . g In business, it is unnecessary to balance off unsettled accounts in tliis way. It is sufficient merely to add up the columns, marking the Dr. or Cr. balances in a temporary way with a pencil, and ruling off the accounts only when they are actually settled. (2) DOUBLE ENTRY. 129 Thomas Dundas, Manchester. 1850. Jan. Mar. 17 To Goods, do.* . • Tliis is supposed to be posted by mis- take to T. Dundas instead of to J. Ad- dison: the error is rectified by an entry on the other side. To Goods. „ do. . Mar. 31 To Balance... 1850. 2 107 16 6 Jan. 10 3 13 5 5 Mar. 17 7 31 8 84 11 3 10 238 5 8 443 ^8 10 238 5 8 By 2 Bills Goods — posted in error, carried to John Addison's dlQ Cash Balance... 1 107 16 2 13 5 5 84 11 238 5 443 18 10 Francis Milner, Dundee. 1850. Jan. Feb. To Goods., „ do. .. 1850. 2 200 16 1 Jan. 15 6 243 2 1 Feb. 26 443 18 2 By Cash 1 190 15 „ Discount. )} 10 1 „ Bill due Mar. 23... 1 243 2 443 18 Alexander Gregory, Calcutta. 1850. Jan. Feb. Mar. 31 To Goods (or Sundries.) Goods To Balance... 1850. 2 200 19 9 Mar. 30 6 265 12 6 31 466 12 3 402 15 5 By Cash— Drawback . . ,, Balance 5 63 16 j> 402 15 466 12 John Addison, Glasgow. 1850. Jan. Feb. To Goods.. „ do... 13 386 400 2 1 1850. Jan. Feb. Mar. 20 By Cash ., Discount.. „ Cash.... „ Cash — Composition „ Balance carried to Bad Debts 1 12 19 ,, 6 3 200 5 93 8 13 93 8 400 2 130 LEDGER. Walter Forbes, George Street. (3) 1850. Jan. Feb. To Goods.. » do 1 115 117 10 1850. Feb. Feb. By Bill due May 17... Cash Discount. . 1 115 16 3 1 4 i> 1 117 1 Richard Hall, Leeds. 1850. 3 212 7 11 Jan. 31 7 24 10 2 Mar. 31 236 18 1 By Bill due April 1 , Balance carried to BadDebts 13 212 24 236 George Campbell, Liverpool. 1850. Jan. Mar. 25 To Goods.. „ do. .. 249 133 382 1850. Mar. 20 By Bill due May 20.. „ Bill due June 20.. 182 200 382 George Smith, Bristol. 1850. Jan. Feb. To Goods, do.... 1850. 4 136 19 2 Feb. 14 5 75 9 1 20 )i 212 8 3 By Bill due March 17 Cash Discount.. 136 71 3 212 (4) DOUBLE ENTRY. Robert Ireland, London. 131 1850. — — 1850. — Feb. 1 To Goods 5 109 12 9 Feb. 9 By Cash 3 104 3 Mar. 22 „ do 10 49 2 10 Mar. 31 „ Discount.. „ Balance... » 5 49 9 2 9 10 31 To Balance... 158 15 7 158 15 7 Mar. 49 2 10 James Pringle, Dublin. 1850. Mar. 19 29 31 from page 1 To Goods.... » do To Balance.. 10 11 767 293 265 10 8 16 10 4 10 1850. Mar. 15 31 from page 1 By Cash „ Discount „ Balance.. 5 717 47 2 559 4 16 10 5 6 4 2 1326 16 1326 16 Mar. 559 5 2 Archibald Logan, Newcastle. 1850. Feb. To Goods... 29/ 1850. Feb. 20 By Bill due May 21... 297 Thomas Simpson, Belfast. 1850. Feb. 20 To Goods.. 76 1850. Mar. By Bill due April 4... 76 132 LEDGER. William Jerdan, Queen Street. (5) 1850. Mar. Mar. 31 To Goods.. „ do. .. To Balance... 1850. 8 106 7 2 Mar. 7 11 290 9 8 31 396 16 10 290 9 8 By Bill due July 11... Balance... William Thomson, Aberdeen. 1850. Mar. 1 16 31 To Goods » do To Balance... 8 9 18 20 5 3 8 6 1850. Mar. 4 31 By Cash „ Discount.. „ Balance... 5 17 20 16 9 3 6 2 6 38 9 2 38 9 2 Mar. 20 3 6 George Knight, Birmingham. 1850. Mar. 4 11 26 31 To Goods » do » do To Balance... 8 9 10 278 19 664 7 17 11 7 8 1850. Mar. 30 31 By Cash „ Balance... 5 298 664 962 4 11 16 7 8 962 16 3 3 Mar. 664 11 8 John Watson, Edinburgh. 1850, Jan. To Cash „ Discount „ Bill due Jan. 23... „ Cash „ Discount 491 25 300 79 4 900 1850. Jan. By Goods.. do.. (6) DOUBLE ENTRY. 133 Thomas Johnston, Leeds. 1850. Jan. Feb. Mar. 20 1 j> 31 To 2 Bills... „ do. due Mar. 4 „ do. due Apr. 4 „ Balance 3 95 95 741 250 300 207 8 17 6 6 1850. Jan. Mar. Mar. 1 13 31 By Goods.... » do By Balance- 1 5 741 757 8 17 6 1499 5 1499 5 6 207 17 6 James Irving & Co., Oporto. 1850. 1850. Jan. 1 By Goods.... (or Sundries.) 1 359 / 6 John Wilson, London. 1850. Mar. 31 To Goods on hand- forward. . This sum is taken from the Stock- Book. „ Cash 12 6 89 3 27 19 2 1850. Jan. Feb. Mar. Apr. 6 17 4 1 By Goods.... „ do „ do By Goods on hand* 1 4 5 7 25 86 10 19 19 2 6 6 119 19 2 119 19 2 89 19 2 • This is not entered in the " Account-Book " as a debt, J. Wilson's account having been settled up to the end of March. The goods on hand are not payable, or due, until they are sold. See Goods on Commission, page 138. William Graham, Kingston, Jamaica. 1850. Mar. 3 31 To 2 Bills, at 30 & 60 days' sight „ Balance.. 3 400 420 4 7 1850. Jan. Feb. Mar. 12 12 31 By Goods.... „ do By Balance. . 2 4 504 315 12 11 8 11 820 4 7 820 4 7 420 4 7 134 LEDGER. D. Mortimer and Son, Manchester. (7) 1850. Jan. Feb. 25 28 Mar. 31 To Bill due Feb. 28.. Bill due Mar. 11.., Cash Discount. Balance.., 1850. Jan. 15 3 572 3 6 Feb. Mar. 1 26 ,, 100 4 40 15 V 2 2 ] 98 13 4 813 13 11 Mar. 31 By Goods., do. .. do. .. By Balance... Marine Insurance Company. 1850. Jan. 18 To Cash. 14 1850. Jan. 16 By Insurance James Reid, London. 1850. Feb. Mar. To Cash Discount. Bill due May 23.. Cash Discount Balance.. 1850. 4 111 11 Jan. 18 5» 5 17 6 Feb. Mar. 16 1 3 124 14 6 20 6 142 10 ,, 7 10 280 2 672 3 2 Mar. 31 By Goods., do. .. do. .. do. .. Alexander Robertson & Co., Glasgow. 1850. Feb. Mar. To Bill due April 5... Cash Discount.. 234 201 5 441 1850. Jan. Feb. By Goods.. „ do. ., • DOUBLE ENTRY. John Anderson, Glasgow. 135 3 73 6 7 1850. Feb. 24 By Goods.. 73 Robert Cunningham, Leeds. 1850. Mar. 31 To Amount forward... 123 15 1850. Mar. Mar. By Goods.. By Amount forward.. 123 123 15 9 .1 15 James Cameron, Demerara. 1850. 1850. Mar. 31 By Sugar— nett proceeds due April 20.. This is brought from the a/c for "Sugar," p. 140. 11 643 William Black, Canton. 1850. 1850. Mar. 31 By Tea— nett proceeds due April 6... This is brought from the a[c for "Tea," p. 140. 11 158 11 136 LEDGER. (9) Union Bank, 1850. Jan. 1 11 15 1 2 17 25 1 20 22 31 »> 31 To Cash 2 »> ») 4 >» » 6 >» 11 2700 123 180 390 80 75 350 100 150 100 316 21 10 Feb. „ do „ do „ do „ do » do „ do Mar. ,, do » do „ do ,, do „ Interest To Balance 4585 10 Mar. 2180 10 This is the Amount of Cash in the Bank. Bills Receivable. 1850. Jan. Feb. Mar. 31 28 31 31 To Amount received from Sundries... „ do. do. „ do. do. To Balance 1 320 792 945 4 17 8 5 5 10 2058 10 8 Mar. 926 8 10 This is the Amount of Bills on hand due to Hamilton & Boyd. Bills Payable. 1850. Jan. Feb. 31 28 31 >» To Cash— paid Sundry Bills -- do. do. 2 4 6 300 1313 350 1132 11 15 6 Mar. „ do. do. „ Balance forward q 3096 7 3 The I)r. and Cr. sides of the accounts are placed on the same page in the preceding part of this Ledger, as is usual in merchants' books ; hut in the accounts above, and (9) DOUBLE ENTRY. 137 Union Bank. 1850. Jan. 6 12 23 12 23 28 4 11 23 31 By Cash 1 »> j> 3 5 » 150 200 375 50 600 350 375 75 230 2180 10 ., do Feb. » do » do » do „ do Mar. » do „ do „ do ,, Balance forward 4585 10 Bills Keceivable. By Cash and Discount. „ do. do. „ Balance forward.... 107 708 316 926 2058 10 Bills Payable. 1850. Jan. Feb. Mar. 31 28 31 31 By Amount granted to Sundries ,, do. do. „ do. do. By Balance 3 >» 1613 1009 473 11 9 6 6 2 7 3096 7 3 Mar 1132 15 Q This is the Amount of Bills due hy Hamilton & Boyd. those that follow, the Br. and Cr. sides are placed on opposite small for making the entries conveniently. as the space is too 138 (10) Goods — General Account. (^Bought.) 1850. Jan. Feb. Mar. Mar. 31 Credit. Cash. 1431 547 5 8 1410 6 9 25 17 34 5 16 14 3388 12 5 76 16 To Purchases, do. do. „ Balance, profit — carried to Profit and Loss.... To Goods on Hand Goods on Commission. 14 1456 581 1427 302 3768 1832 1850. Jan. Peb. Mar. 6 17 4 31 1 To Amount received from J. Wilson „ do. do „ do. do „ Balance, profit—carried to Profit and Loss.. To Goods on Hand These goods are not entered in the Balance-sheet, as they belong to J. Wilson, who sent them on sale. See his account, page 133. 1 4 5 14 7 25 86 18 10 19 9 19 2 6 I 138 18 11 Apr. 89 19 2 Paper. 1850. Jan. To Amount bought from J. Watson „ do. do „ Balance, profit — carried to Profit and Loss.. 517 383 256 1157 (10) DOUBLE ENTRY. 139 Goods — General Account. (Sold.) 1850. Jan. Feb. Mar. By Sales. „ do. . „ do. . „ Goods on Hand,* forward.. * This sum is taken from the Stock-Book. Credit. Cash. 240 19 8 712 4 10 860 1 9 57 1 9 41 16 7 23 8 2 1813 6 3 122 6 6 ward 298 754 883 1832 3768 Goods on Commission. 1850. Jan. Feb. Mar. By Amount sold to J. Edwards „ do. J.Arnold „ do. do „ Goods on Hand,* forward * This sum is taken from the Stock-Book. 3 24 20 89 138 18 11 Paper. 1850. Jan. Feb. 1 16 18 18 By Amount sold to J. Arnold .• „ do. A. Gregory „ do. do 1 2 6 10 369 195 257 335 10 10 2 Mar. „ do. J.Arnold 1157 2 140 LEDGER. Port (11) 31 To Amount bought from Irving & Co „ Cash — duty, freight, &c „ Balance, profit — carried to Profit and Loss... To 2 Pipes on Hand., 350 345 35 731 136 Sugar (On Consignment from J. Cameron, Demerara). 1850. Jan. 1 31 To Cash fJnfv frPijyTit Aro 2 12 8 695 11 71 643 3 11 1 7 9, Mar .. Interest 8 .. Commission 9, „ J. Cameron — nett proceeds,* due April 20 • This Is carried to the Cr. of J. Cameron's account, page 135. The Sugar sold to the various part;ies was payable at difiFerent dates, and April 20 is supposed to be the average of the whole. 5 1421 3 5 Tea (On Consignment from W. Black, Canton). To Cash — duty, freight, &c „ Interest „ Commission „ W. Black — nett proceeds,* due April 6 • This is carried to the Cr. of W. Black's account, page 135. The nett pro- ceeds are stated to be due April 6, being the supposed average of the different dates at which the tea was,payable. 2 277 19 12 3 9 »» 23 2 8 158 1 462 13 11 11 Coffee. 12 31 31 To Amount received from W. Graham , „ Cash — duty, freight, &c „ Amount received from Robertson & Co „ do. „ • „ W. Graham „ Cash — duty, freight, &c „ Balance, profit — carried to Profit and Loss. To 6 Tierces on Hand 491 202 234 306 129 389 1754 235 11 DOUBLE ENTRY. Wine. 141 3 7 20 31 By Amount sold to J. Pringle „ do. „ A. Logan „ do. „ T.Simpson „ 2 Pipes on Hand* — forward * This is taken from the Stock-Book. 222 297 76 136 731 Sugar. 20 4 26 29 By Amount sold to R. Hall.... do. „ G. Knight do. „ do. „ do. „ J. Pringle . 212 278 664 265 1421 Tea. By Amount sold to T. Dundas... „ do. „ G.Smith „ do. „ T. Dundas... „ do. „ G. Campbell 107 136 84 133 462 Coffee. 12 25 19 16 19 31 By Amount sold to J. Pringle „ do. „ G.Campbell „ do. „ P. Milner „ do. „ T. Dundas „ do. „ J. Pringle , „ 6 Tierces on Hand* — forward * This is taken from the Stock-Book. 10 495 249 243 238 293 235 1754 11 142 LEDGER. COUNTING-HOUSE Cash. (12) 1850. Jan. 1 31 To Cash 2 125 This is the sum paid for the furniture. To Balance '.. 125 Mar. 118 15 1850. Jan. Feb. Mar. Mar. 31 To Amount received from Sundries.. „ do. „ do. „ do. „ do. To Balance , This is the amount of cash on hand. 5G83 2593 1623 9900 51 12 Discount. 1850. Jan. Feb. Mar. To Amount allowed to Sundries » do. „ do » do. „ do „ Amount estimated on unsettled ajcis^ carried forward The discount on the accounts owing by and OM-ing to Hamilton and Boyd is supposed to be estimated, and £30 to be the diflTerence between the discount on the Dr. and Or. accounts. 41 37 4 30 114 2 1 Interest. 1850. Mar. 31 To Amount, profit — carried to Profit and Loss. 14 36 11 (12) DOUBLE ENTRY. Furniture. 143 1850. Mar. 31 By Depreciation, 5 % carried to Trade Expenses „ Balance forward 13 118 125 Cash. 1850. Jan. Feb. Mar. By Amount paid to Sundries. „ do. „ do. „ do. „ do. ,, Balance forward 5637 2603 1607 51 9900 Discount. 1850. Jan. Feb, 31 28 31 31 By Amount allowed by Sundries „ do. „ do 2 4 6 14 30 7 12 63 19 13 8 6 7 Mar, „ do. „ do 6 „ Balance, loss — carried to Profit and Loss. ... By Amount estimated — brought forward 6 114 2 1 Mar. 30 This is entered in the Balance Sheet, to make allowance for the dis- count on unsettled accounts. Interest. 1850. Mar 31 By Amount received from Bank , 11 12 5) 21 3 11 10 9 11 „ do. „ Tea » do. „ Sugar 6 8 36 11 2 144 LEDGBB. Insurance. Commission. 1850. Jan. 1 12 Feb. 12 Mar. 31 Bad Debts. (13) 1850. Jan. 1 12 16 12 18 To Amount charged by Irving & Co 1 2 2 4 4 8 12 5 8 7 43 18 10 14 10 14 7 6 Peb. „ do. „ W. Graham „ do. „ Marine Insurance Co. ... „ do. „ W.Graham „ Cash—Insurance on Goods to A. Gregory.... 9 3 To Amount charged by Irving & Co „ do. „ W. Graham „ do. „ do „ Balance, profit — carried to Profit and Loss. 1 9 2 12 4 8 14 96 7 97 17 1850. Mar. To J. Addison's ale — balance. , „ R. Hall's ale — balance Trade 1850. Jan. Feb. Mar. To Cash » do „ do „ Counting-House Furniture — depreciation ,, Insurance Rent&Taxes 5 7 6 2 9 6 85 92 17 Salaries. 21 2 22 17 28 9 4 3 6 1 2 19 11 72 8 Sundries. 6 5 5 In this account is shown the manner of entering some of the particulars of the Trade Expenses, which may be done more or less minutely, according to circumstances. The sum-total of each month is the amount of the columns in the Cash-Book for Trade Expenses, the particulars being noted on a piece of paper and entered as above. Care must be taken to see that the amount of the particulars agrees with the eum- totaL (13) DOUBLE ENTRY. Insurance. 145 1850. Jan. Feb. Mar. By Amount charged to A. Gregory. „ do. „ do. „ Balance to Trade Expenses 2 5 14 6 7 14 13 29 18 43 7 Commission. 1850. Jan. Feb. 16 18 ?> 31 »5 By Amount charged to A. Gregory „ do. „ do. 2 6 12 3 23 71 97 5 7 2 1 17 9 9 Mar. „ do. „ J.Wilson do. „ Tea „ do. „ Sugar 8 2 4 Bad Debts. 1850. Mar. 31 By Amount, loss— carried to Profit and Loss 14 117 18 6 Expenses. 1850. Mar. 31 By Amount, loss — carried to Profit and Loss... 14 207 13 11 146 (14) TRIAL BALANCE. 1850. Mar. 31 To Amount of page 1 . do. 2. do. 3. do. 4. do. 5. do. 6. do. 7. do. 8. do. 9. do. 10. do. 11. do. 12. do. 13, do. 14 do. 15 305 641 608 975 3106 4486 2060 284 327 190 12,985 1 10 10 7 1 I 5 11 The Trial Balance (see page 91) is drawn up before making the various entries for Profit and Loss and Goods on Hand, in the accounts from pages 10 to 15 of the Ledger; in adding these pages, therefore, all such entries must be omitted, and the accounts in which they occur, understood as not balanced off at this stage. PROFIT AND LOSS. 1850. Mar. 31 31 To Loss— Discount „ „ Bad Debts J Trade Expenses 12 13 15 63 117 207 746 8 18 13 15 6 „ Balance forward These entries on each side are transferred from the accounts under their respective heads. To J. Hamilton — Interest on £2000, January to March „ „ Profit— his half-share, „ „ „ Robert Boyd — Interest on £2000, „ „ „ ,) Profit— his half-share, ,, „ Interest on the capital of each partner is entered as above, for the reason mentioned under " Profit," page 20. 1135 15 11 Mar. 25 348 25 348 7 7 6 6 746 15 (14) DOUBLE ENTRY. TRIAL BALANCE. 147 1850. Mar. 31 By Amount of page 1 . do. 2. do. 3. do. 4. do. 5. do. 6. do. 7. do. 8. do. 9. do. 10. do. 11. do. 12. do. 13. do. 14 do. 15 1077 378 925 1132 3141 2114 117 9 4000 12,985 1 11 The Profit and Loss Account, page 14, and Balance Sheet, page 15, are supposed not to be entered at all ; and the accounts of J. Hamilton and R. Boyd to contain only the sums paid into or drawn from the business. PROFIT AND LOSS. 1850. Mar. I Mar. 31 31 By Profit — Goods (general account).. „ Goods on Commission „ Paper „ Port Wine „ Coffee „ Commission „ Interest By Balance.. It will be useful, as a cheek on the accuracy of this account, also to ascertain the Profit by the method described at page 20. 10 11 302 18 256 35 389 96 36 1135 746 746 15 15 148 LEDGER. BALANCE SHEET. (15) Dr. Hamilton and Boyd. 1850. Mar. 31 To Bills Payable „ Accounts due by Hamilton & Boyd This is the sum-total of the accounts in the Ledger the particulars are entered in the '* Account-Book,' page 150. „ Discount (estimated) on unsettled Accounts „ Balance — Nett Capital* * The one half of the capital belongs to J. Hamilton, and the other half to R. Boyd. 12 1132 2291 30 3454 4556 8010 15 18 1 JAMES HAMILTON. 1850. Jan. Feb. Mar. To Cash » do 5, do „ Balance forward. 30 30 35 2278 2373 ROBERT BOYD. 1850. Jan. Feb. Mar. 30 To Cash 10 „ do 5 „ do , 31 „ do „ Balance forward. 25 15 40 15 2278 2373 (15) L DOUBLE ENTRY. BALANCE SHEET. 149 Hamilton and Boyd. Cr. 1850. Mar. 31 By Goods on Hand (general account) „ Port Wine „ Cofiee „ Counting-House Furniture „ Accounts due to Hamilton & Boyd. See " Account-Book." „ Bills Receivable „ Union Bank (viz. Cash in Bank) „ Cash (viz. Cash On Hand) The entries on each side are taken from the accounts under their respective heads in the Ledger. JAMES HAMILTON. 12 1832 136 235 118 2322 2530 926 2180 51 8010 11 10 18 U 1850. Jan. Mar. Mar. 31 By Cash „ Interest, Jan. to March, hrought from Profit & Loss „ Profit, ,, ^ share ,, ,, do. By Balance This is J. Hamilton's half of the capital belonging to the firm of Hamilton and Boyd. See Balance Sheet. ROBERT BOYD. By Cash „ Interest, Jan. to March, hrought from Profit & Loss „ Profit, „ ^ share ,, ,, do. By Balance This is R. Boyd's half of the capital belonging to the firm of Hamilton and Boyd. See Balance Sheet. 2000 25 348 2373 2278 1850. Jan. Mar. Mar. 31 2000 25 348 2373 2278 ACCOUNT-BOOK. Accounts owing by Hamilton & Boyd, March 31, 1850. T. Johnston Leeds Irving & Co Oporto W. Graham .....Kingston D. Mortimer & Son ...Manchester.. J. Reid London R. Cunningham Leeds J. Cameron Demerara.... W. Black Canton The names, when numerous, should be arranged alphabetically. 207 359 420 98 280 123 643 158 2291 Accounts owing to Hamilton & Boyd, March 31, 1850. J. Turner Charlotte Street.. T. Dundas Manchester A. Gregory Calcutta R. Ireland London J. Pringle Dublin W. Jerdan Queen Street W. Thomson Aberdeen G. Knight..-. Birmingham The Account-Book contains a list of all the Accounts owing to and by Hamilton and Boyd, as ascertained from the various Ac- counts in the Ledger. When any of these are paid, the sums are entered in the outer money columns here left blank : it can thus be seen at a glance what accounts are settled. 305 238 402 49 559 290 20 664 2530 11 APPENDIX. I SPECIMENS OF ACCOUNTS, EXPLANATIONS OF MERCANTILE TERMS, TRANSACTIONS, &c. Lbbreviatio NS. — ^The following contractions are in common use A/c, a/c, Account. Ulto The last month. Cr. Creditor. d/d Days after date. Dr. Debtor. ^/s Days after sight. Ditto, do. The same. "^/d Months after date. E.E. Errors excepted. I per cent. I. 0. U. I owe you. m at. Inst The present month. r per. Proxo The next month. Account. — A statement showing the amount due by one person to another for goods, cash, &c. Accounts are kept under their several titles in the Ledger, from which they are copied when required. Examples. Account copied from a Wholesale Ledger. Mr George Knight, Birmingham. To Hamilton &, Boyd, London. In rendering this account, it is unnecessary to give the particulars of the entries. When the goods were forwarded, invoices, containing the particulars, were either sent along with the goods, or separately by post ; and in making out the account, only the dates and sums require to be stated. The above is copied from Hamilton & Boyd's Ledger, page 132. APPENDIX. Account copied from a Retail Ledger. Mr John Alison, Frederick Street • To John Adams, Edinburgh, 1850. Feb. Mar. 2 Pair Blankets 17/6 10 Yards Superfine Black Cloth 18/6 5 „ Doeskin 5/6 6 lbs. Green Tea b/Q 8 „ Black do 4/ 6 „ Loaf Sugar. 8d. 15 16 In copying this account, all the particulars require to be given, as no invoice or account of these was sent when the goods were got. This is taken from J. Adams's Ledger, page 60. The Ledger contains only the sums-total of each entry; the particulars are ascertained by refer- ring to the Day-Book. If a note of the account requires again to be sent to John Alison, it is written out in this way : — Mr John Alison, Frederich Street To John Adams, Edinburgh. 1850. Mar. 12 Account rendered 1516 6 When wages or salaries are not paid in full to the parties at stated times, but by partial payments at irregular times, the sums are entered in the Cash-Book, not under the head of Trade Expenses, but under the names of the different persons who receive the salaries. The sums are then posted to their several accounts, and afterwards transferred to an account for Salaries. Thus — James Brown. 1850. Jan. Mar. To Cash- do. . 12 1850. Mar. 31 By Salary, carried to Salary a/c 12 APPENDIX. A. Smith. 1850. Jbh, 19 14 31 To Cash 2 4 4 6 5 15 1850. Max. 31 By Salary, carried to Salary a/c 8 15 Feb. Mar. « do „ Balance forward.... Mar. 31 By Balance 5 A. Smith's salary amounts to £15 ; but as he has drawn only £10, the balance of £5 is carried forward to the Cr. of his account. Salaries. 1850. Mar. 31 55 To J. Brown's Salary „ A. Smith's Salary 7 9 12 15 27 z 1850. Mar. 31 By Amount carried to Trade Expenses 10 27 Accounts are kept in the Ledger not only for individuals, but also for the various branches of a merchant's property. The details of such accounts vary according to the nature of the case, but the following will serve as specimens : — Warehouse Buildings. 1850. Jan. 1 To Cash . 1000 1850. ' The warehouse is supposed to have cost £1000. This sum is entered in the Cash-Book when paid, and posted from thence to an account to be opened in the Ledger under whatever title will best describe the property. If the building becomes deteriorated in value from any cause, an entry requires to be made similar to that in the account for Machinery given in next page. Interest 5 per cent, on the value requires to be charged to the " Trade Expenses," or to whatever department of the business it be- longs, also any payments for repairs, &c. IV APPENDIX. Printing Machinery. 1850 — — 1850 i Jan. 1 To Cash 1 1000 Dec. 31 ByTear&Wear 5 ^ cent, carried to Printing- office ale „ Balance forward. 8 50 950 1000 1000 1851 Jan. 1 To Balance. 950 The machinery is supposed to cost £1000, and to undergo a yearly deterioration of 5 per cent, off the cost price. This deterioration (£50) is carried every year to the Dr. of the Printing-Office account, reducing the value of the machinery by this sum annually. Printing-Office. 1850 Dec. 31 To Interest on Machinery, 5 ^1^ Tear &Wear of do. — from " Machinery" ajc 9 50 7 50 100 The Printing-Office requires to be charged yearly with the interest on the value of the machinery, and with the tear and wear. Account Current. — An account in which is drawn out in Dr. and Cr. columns, a statement of the transactions that have taken place between two parties during a certain time. Example. Dr. J. Black, Edinburgh, in account with T. Smith, London. Cr. 1850. Jan. Feb. Mar. Mar. 30 1850. To Goods 12 14 6 Jan. 5 „ do 37 19 3 20 „ do 45 16 8 Feb. 3 „ do 30 8 2 Mar. 2 » do 72 4 2 2 9 30 199 To Balance... 91 17 8 This is the balance due by John Black 10 Thomas Smith. By Goods 5, do ,j do « do „ Balance — forward. 24 30 12 40 91 199 17 APPENDIX. Account -Sales. — An account drawn out by a commission agent, showing the sales he has made of goods on account of another party. It contains a statement of the quantities sold, and the prices, also the charges for freight, commission, &c. Example. Account-Sales of 50 hhds. Sugar, per " The Jane," consigned by James Cameron, Demerara. 1850. Jan. Mar. 30 Jan. Mar. 26 29 31 6 Hhds. J. C. 1 to 6, (@ 72 days.) cwt. qr. lbs. CM-t. qr. lbs. cwt. qr. lbs. gross 98 2 27, tare 7 2 24, nett 91 3, @ 46/ 8 16 Hhds. J. C. 7 to 22, (@ 26 days.) gross 245 16, tare 17 1 12, nett 227 3 4, @ 42/ 20 Hhds. J. C. 23 to 42, (@ 1 month.) gross 311 1 0, tare 26 1 20, nett 284 3 8, @ 46/8 8 Hhds. J. C. 43 to 50, (@ l month.) gross 131 1 9, tare 11 1 17, nett 119 3 20, @ 44/4 CHARGES, cwt. qr. lbs. Duty on 723 2 7 ^506 9 Freight 177 15 Shore dues, &c 2 3 Cooperage, porterage, &c 8 15 Interest on cash paid for duty, freight, &c. 11 11 Commission 5 % on Sales (£1421, 3s. 5d .) 71 1 Besides the above, there are generally charges for rent, insurance, &c. Nett proceeds, due April 20 E. E. London, Hamilton & Boyd. 212 278 664 265 1421 777 643 11 The above is taken from the account in the Ledger under Sugar, page 140 : the amounts only are given in the Ledger, but the particulars of the entries will be found in the Day-Book and Cash-Book at the dates marked. A book termed an '* Account Sales-Book " is generally used for entering sales of goods on com- mission such as the above. The proceeds are stated to be due on April 20, being the supposed average of the various dates at which the sugar is payable. The letters E. E. mean " Errors Excepted." Adventure. — A term applied to shipments of goods to or from some particular place. Thus if a merchant shipped a quantity of goods to Calcutta, the shipment might be termed " Adventure to Calcutta," and under this title an account would be kept in the Ledger of the proceeds and expenses, showing how much was gained or lost. APPENDIX. Affidavit. — ^An oath or declaration as to the truth of a fact. In cases of bankruptcy, or when a debtor dies, persons on lodging their claims or accounts require to send their affidavits along with them. Thus — ENGLISH FORM. In the Matter oi Edward Lindsay^ Silk Mercer^ 139 Strand, London, a Bankrupt. John Douglas of the city of London, Silk Mercer, maketh oath and saith that the said Edward Lindsay, Silk Mercer, in 139 Strand, London, the person against whom a Fiat in Bankruptcy hath been late awarded and issued, and is now in prosecution, was at and before the date and issuing forth of the said Fiat, and still is justly and truly indebted to this Deponent (or if there is a partner, and to his partner in trade, James Hamilton,) in the Sum of one hundred and twenty pounds, for goods sold and delivered by this deponent {arid his said partner), in tlw months of Au- gust and September 1849, for which said sum or any part thereof, he this deponent, hath not (nor hath his said partner), nor any other person or persons by this deponenfs order, or for his (or their) use to this Depo- nent's knowledge or belief, had or received any security or satisfaction whatsoever. Jo/m Douglas. /Sworn at London in the County of Middlesex, ) this siocth day of January, one thousand eight j hundred and ffy. \ Before me, Thomas Smith, a Master Extraordinary in Chancery. SCOTCH FORM. At Edinburgh, the tenth day of January, Eighteen Hundred andjify, in presence of James Anderson, Esq., one of Her Majesty's Justices of the Peace for the city of Edinburgh, compeared John Adams (or if there are partners, John Adams of tlie firm of John and Thomas Adams), who being solemnly sworn and interrogated. Depones, That, George Brown, Draper, 12 George Street, Edinburgh, is justly indebted and resting owing to the Deponent (or, to the company of which Deponent is a partner) the sum of twenty pounds ten shillings, being the Amount of the annexed account. Depones that no part of said sum has been paid or compen- sated; nor does the Deponent (or his said partner) hold any other Person than the said George Brown bound for the Debt, or any secu- rity for the same. All which is truth, as the Deponent shall answer to God. John Adams. James Anderson, J. P. The afl&davit is usually a printed form filled up with writing. The words in Italics are those commonly written. Assets. — A term used to denote the property of every description belonging to an individual. Bankruptcy. — ^Wlien a person becomes unable to pay his debts, he is said to be insolvent ; and when his insolvency is legally announced, or gazetted, he is termed a Bankrupt. By the process of bankruptcy in the law of England, termed Fiat in Bankruptcy (similar to that of Sequestration in the law of Scotland), if the creditors to a certain amount concur in petitioning for 2i>fiat, the causes of the insolvency are APPENDIX. Vil investigated ; and if there has been no fraud, the individual is relieved from all previous obligations, on giving up his entire property. It is only persons in trade that are entitled to the benefit of this process of bankruptcy, all others being excluded. In the event of persons not in trade becoming insolvent, they must submit to the ordinary laws respecting debtors. The persons to whom the realisation, manage- ment, and distribution of the estate of a bankrupt are committed, are termed his Assignees or Trustees, (See Insolvency.) Bank Cheque. — An order on a banker to pay a certain sum of money when the order is presented, drawn out by a person wlio has money deposited with the banker. A bank cheque is usually a printed form filled up with writing. No. 324. Examples. No. 324. Edinburgh, January/ 1, 1850. Jan. 1, 1850. ::i<5x To the Treasurer of the Bank of Scotland. G. Bruce, . -^jS^"-^ Pay to Mr George Bruce, - - - - OacX Otic hundred pounds - - - - X- 17 21 Feb. 11 Mar. 7 11 April 6 May 1 June 16 11 July 1 To 1 cwt. Sago 1 Box Preserved Fruit Various small articles 10 lbs. of best Sugar 12 lbs. Wax Candles 2/6 6 lbs. Congou 4/6 1 lb. Hyson Cash Half cwt. Sago 18/ 1 Cheese Cash Cash Letter of Attorney, or Power of Attorney. — A legal document, by which one party is authorised to act on behalf of another in some matter of business. Letter of Credit. — A letter or order sent by one banker to another, authorising him to pay the bearer of the letter a certain sum specified, in consideration of the same sum having been paid to the banker who grants the letter. Lloyd's. — ^The name given to a set of rooms in London, used by the Society of Underwriters or Marine Insurers there as their office, liloyd's is not only a centre point in the metropolis for all sea-insurance business, but is the place to which every species of intelligence respect- ing shipping is forwarded from all parts of the world; and this infor- mation is exhibited in one of the rooms for pubHc inspection. The lists made up and exiiibited at Lloyd's furnish authentic information for the use of merchants and shippers of goods all over the United Kingdom. Manifest. — A document containing a specific description of a ship, with a list of the names of the passengers, and of the packages, &c. forming her cargo. It is signed by the master at the place of lading. Orders. — An order is a request from one dealer to another to supply certain goods. An order, when in writing, should be plain and explicit, and ougiit to contain no more words than are necessary to convey the sense in a simple, courteous manner. Studied abbreviations sliould be avoided — such as " have just received" for " I have just received," "amt." for "amount," "reed." for "received," &c. XX APPENDIX. Partnership. — ^When two or more individuals associate together to carry on a business, they are said to be in partnership. Each partner receives such a share of the profits as may be agreed upon, according to the nature of the partnership and the amount of capital that each has embarked in the business (see Company). Per Cent. — A contraction of Per Centum, meaning per hundred, and is applied to rates of interest, discount, &c. Thus interest at 5 per cent, means interest at five pound^ for every hundred pounds. Per cent, is in business fi'equently written % as a contraction. Thus 5 per cent, would be written 5 %. Permit. — A license given by the Excise Office to permit the re- moval of exciseable goods from one place to another. Petty Cash-Book. — ^This book is often used for entering small sums received and paid, see page 45. Example. Cash Received. Cash Paid. 1850. Jan. 1 Simdrifis I 1 4 7 9 7 8 6 8 3 6 11 1850. Jan. 1 2 5 31 Carriage 1 1 3 12 ^ 3 7 31 do Washing Shop Twine do S do Coals f> Goods — cash sales entered in Casli-Book.. Trade Expenses — entered in Cash-Book. . 18 3 Th B S urns received and p. lid arc tr ansfer red to the ♦' Cash-Book ^" either daily, weekly, or monthly, according to circumstances. Postage. — Inland letters are charged Id. if not above half an ounce, 2d. if not above one ounce, 4d. if not above 2 ounces, 6d. if not above 3 ounces, and so on. Post-Office Order. — An order granted at the Post-Office for sums not exceeding five pounds. A person vdshing to transmit money to a distance pays the amount to the nearest Post-Office, and receives a Post-Office order, payable at the Post-Office where the person resides who is to receive the money. Orders are granted at the principal Post-Offices throughout the Idngdom. The charge is 3d. for sums not exceeding £2, and 6d. for sums above £2. Posting. — Copying or transferring into the Ledger the entries made in the Day-Book, Invoice-Book, Cash-Book, and Bill-Book. Price Current. — ^The technical term for a list showing the market prices of commodities. Principal. — ^The term applied to money when lent out at interest. Protesting Bills. — See Bills. APPENDIX. XXI Receipt. — An acknowledgment of a certain sum of money having been received. The following are common forms : — £25 3 6. JEdinhurgh, January 1, 1850. Received from Mr John Brown, London, the sum of twenty-fve pounds three shillings and sixpence, in payment of accomit rendered (or of annexed account), James Wilson. London, March 31, 1850. Received from Mr James Russell, the sum of seventy-five pounds eight shillings, in payment of account to this date. £75 8 0. Robert Thomson. When the sum received is above five pounds, the receipt, in order to be legally valid, requires to be written on stamped paper. The price of the stamp varies according to the sum. If a stamp is not required, an account may be marked as settled by the person who receives the money writing at the bottom of it " paid '* or " received payment," and then subscribing his name, thus — Mr W. Hunter. To John Adams, George Street, Edinburgh. 1850. Mar.Zl. Account rendered £10 16 2 May 2. Paid, John Adams. Wlien one person receives money on behalf of another, he signs thus : Paid, John Adarns ^ Paid, Thomas Smith per Thomas Smith. ® for John Adams. Salvage. — When a ship or its cargo has been saved from shipwTcck or loss at sea by uninterested parties, the persons sa^^ng the vessel or goods are entitled to remuneration from the owners. The sum paid is termed the salvage. Sequestration. — ^The term used in the law of Scotland to denote the form of process by which, if the creditors to a certain amount con- cur in petitioning for it, an insolvent's affairs are legally investigated, and his whole property officially taken possession of or sequestrated for behoof of his creditors. By the process of sequestration, if there has been no fraud, he is relieved from all his previous obligations. It is only persons in trade that are entitled to the benefit of this legal pro- cess. See Cessio Bonorum and Insolvency. Sequestration has nearly the same meaning as " Fiat in Bankruptcy " in the law of England. APPENDIX. Stamp Duties. — ^Tlie following are the duties on bills and receipts :- Inland. Bills. Foreign. Not exceeding Two Months after Longer date, or Sixty Days after Sight. period. Drawn singly, same as Inland Bills. s.d. s. d. When in sets^ then for every For £2 & not above £5, 5s. 1 1 6 bill of each set not ex- s. d. Above 5,5s 20 16 2 ceeding - - £100 1 6 20 ... 30 20 2 6 Above £100 & not above 200 3 30 ... 50 26 3 6 ... 200 ... 500 4 50 ... 100 36 4 6 ... 500 ... 1000 5 100 ... 200 4 6 5 ... 1000 ... 2000 7 6 200 ... 300 5 6 ... 2000 ... 3000 10 300 ... 500 6 8 6 ... 3000 15 500 ... 1000 8 6 12 6 1000 . . . 2000 12 6 15 2000 . . . 3000 15 25 3000 ... 25 30 1 Receipts For money amounting to £5 and under £10 10 ... 20 - - 20 ... 50 50 ... 100 - 100 ... 200 200 ... 300 - 300 ... 500 500 ... 1000 - 1000 or upwards, - For any sum acknowledged to be in full of all demands, Terms.— The following are the terms for leases, &c. :— - s. d. 3 - 1 1 - 2 4 - 5 7 6 - 10 10 England and Ireland. Lady Day, - - - March 25 Midsummer, - - June 24 Michaelmas Day, - September 29 Christmas, - - December 25 Scotland. Candlemas, - - February 2 Whitsunday, - - May 15 Lammas, - - - August 1 Martinmas, - - November 11 Tariff, or Tarif. — The term applied to a table of the articles subject to Customhouse and Excise duties, with their respective rates. Underwriter. —The name given to those who follow the profession of marine insurers ; they undertake the risk of the insurance, and subscribe— that is, write their names under the policy or deed expressing this— hence the term underwriter. Vendue.— A colonial phrase, used instead of public auction. To sell goods at vendue is to dispose of them at auction. Voucher.— A document shown in proof of some payment having been made. Thus an account marked paid in the hands of a person, is a voucher that the sum mentioned in the account has been paid. Edinburgh : Printed by W. & R. Chambers. 'V %■ ^^^ Kj'lf i^k; rfi T?l THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL PINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. 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